The final piece of the financing, coming from two sources, will be used to build an indoor waterpark and Tapestry hotel in Hall of Fame Village … the resort that is going in around the nonprofit Pro Football Hall of Fame in Canton, Ohio.
Hall of Fame Resort & Entertainment Co. has collected $78 million to complete Phase II of its football-themed resort in Canton, Ohio, the Cleveland Business Journal reported. The final piece of the financing, coming from two sources, will be used to build an indoor waterpark and Tapestry hotel in Hall of Fame Village … the resort that is going in around the nonprofit Pro Football Hall of Fame, the company said.
Completion of the waterpark and hotel is expected to enhance revenue generation for all its resort business, the Business Journal reported.
Some $50 million to help build the football-themed waterpark will come from a sale-leaseback transaction by Oak Street Real Estate Capital LLC, a division of Blue Owl in Chicago, the Business Journal reported. And Industry Realty Group (IRG), the resort company’s largest shareholder and its resort’s master developer, is providing “multiple levels of support,” the company said.
IRG’s support includes:
– A commitment of completion guarantee for the football-themed waterpark;
– A term sheet for a $28 million senior loan to build the onsite Hilton Tapestry hotel; and
– Restructuring existing debt owed to IRG.
“These two financing arrangements are significant signs of progress toward achieving the stated end goals of our Phase II financing plan,” said Michael Crawford, the resort company’s President and CEO, in a statement. “Our strategy to capture ‘just-in-time financing’ and our ability to articulate our process to shareholders and lenders, has allowed us to improve our debt profile and generate value for our shareholders—even in in the face of the global pandemic and the difficult and escalating interest rate environment,” Crawford said.
The 147,000-sq.-ft. waterpark and seven-story, 154,000-sq.-ft. hotel will be located at the north end of the resort campus, the Business Journal reported. That’s next to its “Fan Engagement Zone,” which is made up of restaurants and other retailers and will be the eventual home for the resort’s on-site sports betting, the company said.
Shares of Hall of Fame Resort (Nasdaq: HOFV) fell almost 4% to about 61 cents Nov. 9, the Business Journal reported. The resort company made its financing announcement after the market closed for the day. The shares were up by the same percentage to 63 cents in after-market trading on Nov. 9.
In September, shareholders approved a reverse stock split to consolidate between 10 and 25 of their shares into one share to regain listing compliance with the Nasdaq Stock Market, the Business Journal reported.
In July, C+RB reported that $33 million in Property Assessed Clean Energy (PACE) financing allowed the property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment.
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