TEXARKANA, Texas - Developers have secured the multilayered, $26 million financing package that will pay for rehabilitating the Hotel Grim.
Closed Friday by Cohen-Esrey Development Group, the transaction includes both housing and historic tax credits, EPA funds, a Neighborhood Stabilization Program loan, conventional debt, and local contributions from the city.
"We are excited that we've officially crossed the finish line," said Jay Johnson, development director for Cohen-Esrey, in a news release.
"With over half a dozen financial sources, the Grim might take the cake as the most layered and complex pairing of historic and housing tax credits in the state's history. But more importantly, we know it will soon be highlighted nationally as a gem of both historic preservation and downtown revitalization," Johnson said.
Cohen-Esrey purchased the property in July. With financing settled, abatement of asbestos and other toxic materials can begin, and plans include full construction starting in November. Cohen-Esrey representatives have said the company will hire local subcontractors as much as possible.
The project is expected to be completed in the spring of 2021. The building will feature studio, one- and two-bedroom apartments, 93 units in all.
"As the cornerstone of our downtown revitalization plan, we look forward to seeing this historic structure brought back to life," said David Orr, the city's director of planning and community development.
Texarkana Water Utilities recently replaced more than 300 feet of collapsed sewer main near the building, and a local company put up security fencing around it.
Leander, Texas-based Building Abatement Demolition Co. will remove asbestos, lead-based paint and mold toxins from the building.
Cohen-Esrey has launched a website, HotelGrimApartments.com, aimed at potential future tenants of the building. It features floor plans and descriptions of the hotel's planned amenities.
Named after Texarkana banking, railroad and timber magnate William Rhoads Grim, the hotel opened in 1925. Construction cost for the luxurious 250-room hotel was nearly $1 million. It closed in 1990.
The headline of this story has been corrected. A previous version stated an incorrect dollar amount.