Block E Development + Graves 601 Hotel

Block E is a mixed-use development that consists of two floors of retail/restaurant space, a third-floor movie theater, two floors of underground parking and a 22-story hotel. The $150 million project included 268,259 square feet of retail space, a 230,637-square foot parking garage and a 205,000-square foot hotel.

McCaffery Interests Inc (retail) and Graves Hospitality (hotel) developed the project in response to a City-issued Request for Proposal to redevelop a full downtown block that was serving as surface parking. The project filled a void, which separated the downtown financial area from the entertainment and warehouse districts and Target Center.

Essentially, the team constructed two projects in the same space, simultaneously for two different owners. Integrating the construction and design requirements of both projects and owners was challenging. The tenant mix for the retail space and the type of hotel to be constructed unfolded as the project progressed.

The design delivery to the construction team occurred during two years in the form of 14 bid packages. Both projects came in close to budget but required value engineering of materials, construction methods, and scope inclusion. Project funding involved tax increment financing as well as a first mortgage.