How We're Raising $3M for a Hotel & Parking Project
Structuring a Capital Raise for a Hotel and Automated Parking Development
The process of raising capital for a large-scale real estate project requires strategic planning, well-structured entities, and the right funding platforms. At Pink Development & Construction, we’re structuring a capital raise for a hotel and automated parking structure—a combined $7 million development in Columbus, Ohio. Here’s a breakdown of how we’re setting it up.
Project Overview: Hotel & Automated Parking Structure
Our total development cost is projected at:
- $5 million for the hotel
- $2 - $2.5 million for the automated parking structure
We already own the land, and our strategy leverages land equity to cover key pre-construction costs, including architectural design, engineering, and final site compliance. With final entitlements secured, we’re now focusing on capital raising.
Capital Raise Structure: Using SPVs
To raise the necessary funding, we’re structuring two Special Purpose Vehicles (SPVs):
- One SPV for the hotel
- One SPV for the parking structure
These are separate asset classes, meaning they will have distinct investors and financial structures. However, the hotel will lease the parking structure, creating a revenue-generating relationship between the two. This leasing arrangement increases the appraised value of the parking structure, which benefits both investors and the overall project’s financial outlook.
Why Use SPVs?
SPVs allow us to isolate risk, offer investors clear ownership stakes, and streamline capital contributions. Additionally, they make it easier to sell or refinance individual components of the development.
Capital Raising Strategy & Platforms
We’re leveraging two key platforms to streamline our capital raise:
1. SPV Hub
SPV Hub is an all-in-one deal syndication platform that simplifies compliance, banking, investor onboarding, and escrow management. Instead of hiring separate securities attorneys and financial administrators, this platform centralizes everything, making the process more efficient and cost-effective.
2. Rises.com
Rises.com provides a structured approach to capital raising and investor relations. Their system integrates short-form content marketing, automated funnels, and investor outreach—strategies that align with our existing approach.
Due Diligence & Timeline
We’ve conducted due diligence on both platforms, including speaking with other developers and investors who have used them successfully.
- SPV entity formation: In progress, expected completion in 1-2 weeks
- Capital raise launch: Aligned with entity formation and onboarding
- Site purchase deadline: May 6th, 2025
- Minimum check size for investors: $50,000 - $100,000
Note: This is not a solicitation for investment. We are sharing our capital structure and development process.
Next Steps: Closing & Permitting
Over the next 45 days, we are focused on:
✅ Finalizing the land acquisition for the hotel
✅ Buttoning up remaining entitlement details (small adjustments to site plans)
✅ Executing investor meetings to finalize capital commitments
✅ Completing site compliance and structural planning
✅ Engaging architects and engineers for detailed design
Our experience with this project highlights key lessons:
- Understanding zoning and permitted uses—Our original plan for apartments wasn’t feasible, so we pivoted to a hotel.
- Securing dedicated parking early—Hotels require parking, and we solved this by acquiring a nearby site for an automated parking structure.
- Strategic fundraising—Using SPVs and established platforms reduces risk and increases efficiency.
Final Thoughts
This project is a case study in capital structuring, entitlement navigation, and strategic financing. By using SPVs, established syndication platforms, and data-driven fundraising, we’re building a foundation for a successful hotel and parking development in Columbus.
Want to dive deeper into our process? Watch the full breakdown in this video!
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