Octagon Finance provides $68M for major Richmond office-to-residential conversion

Richmond, VA — Octagon Finance has provided a $68,000,000 Unitranche loan to support the construction of Altitude on Main, a transformative 302-unit, 17-story mixed-use development in the heart of downtown Richmond. The project is developed by Nick Patel with Kalyan Hospitality and Steven Walker with RPC Capital. This exciting project will revitalize a historic office building at 801 East Main St., converting it into a modern, multifamily complex that will blend rich history with contemporary living.

The $68 million loan included significant Historic Tax Credits which can be used for conversion projects of this type.

The developer, a seasoned historic rehabilitation expert, has crafted a project that is both visionary and rooted in the community’s rich history. The new development will feature 8,500 s/f of ground floor retail space and 366 parking spaces, including a three-level subsurface garage and adjacent parking deck.

The project will offer residents a wide range of state-of-the-art amenities, including a fitness center, a clubroom, a “Sky Lounge” with panoramic views of the city, a rooftop patio with a pergola, an indoor pickleball court, and a golf simulator. The development is poised to be a cornerstone of downtown Richmond’s vibrant cultural scene, situated just two blocks away from the iconic Virginia State Capitol building.

“The Historic Tax Credit (HTC) program is poised to play a crucial role in making office-to-residential conversions financially viable, breathing new life into underutilized buildings and revitalizing urban centers. With Octagon’s Unitranche financing solution, developers can streamline the process by working with a single capital provider, ensuring certainty of execution and a smoother path to closing. This combination of strategic financing and tax incentives creates a powerful opportunity to transform office spaces into much-needed housing, and we’re excited to be at the forefront of making these conversions a reality,” said Udi Kore, managing partner of Octagon Finance.

Richmond’s downtown area offers an exceptional quality of life, blending historical charm with modern conveniences. The city is home to a thriving arts and culture scene, and the area surrounding the project is rich in cultural attractions, including museums, theaters, art galleries, and restaurants. The proximity of the project to major employers, including a new expansion of the CoStar Group, further underscores its strong potential for long-term success.