AN OFFICIAL PRESS RELEASE
April 11, 2019

Community Breaks Ground on Rochester’s First Opportunity Zone Investment

Located a few blocks from world-renowned Mayo Clinic, the 172-room Hyatt House will allow thousands of visiting patients from around the world to have comfortable extended stay accommodations while receiving ongoing medical care.

ROCHESTER, Minnesota, April 11, 2019 – City dignitaries, development professionals, and members of the community today gathered with PEG Companies (PEG) and EKN Development Group (EKN) to break ground on Rochester Hyatt House, the City of Rochester’s first development to take advantage of the federal Opportunity Zone
Investment program created by the December 2017 Tax Cuts and Jobs Act.

 

Located at 315 1st Ave NW, this upscale select service hotel will provide apartment-style extended stay options for thousands of patients receiving ongoing care at the neighboring Mayo Clinic and will come fully-equipped with functional kitchens, comfortable living rooms, spacious bedrooms, and stylish bathrooms in many of its 172 suites.

 

Project leaders regard the property itself as a formative piece of Rochester’s history and paid special tribute to the American Legion, Post #92 – the land’s previous stewards – during Thursday’s groundbreaking. This organization served the “Mayo Brothers Veterans” Dr. William J. Mayo and Dr. Charles H. Mayo in the early 1900’s.

 

The property continues to add value to the community today as home of the first ever Qualified Opportunity Zone (QOZ) project in the City of Rochester.

 

“Rochester Hyatt House could be the poster child of this exciting, innovative program at work. Federal policymakers designed the QOZ Program to stimulate economic activity across the country – and that’s exactly what you are seeing here,” said PEG Founder and Chief Executive Officer Cameron Gunter. “While many real estate developers are rushing to identify QOZs where they can build, PEG is fortunate to be operating well ahead of the curve. We had already been pursuing deals in areas that are now designated as QOZs, allowing us to be first to the market with projects like this.”

 

The project is also backed by Destination Medical Center (DMC), a robust $5.6 billion statewide economic development initiative designed to position Minnesota as a global center for the highest quality medical care and to generate high-value jobs, new tax revenue, and businesses.

 

“This new hotel property is a wonderful addition and fills a niche for visitors and patients to Rochester, Minnesota,” said Lisa Clarke, Executive Director of the Destination Medical Center Economic Development Agency. “It’s another great example of the investor and development community taking notice of the tremendous opportunities that exist in Rochester.”

 

“The DMC legislation has created an excellent opportunity for developers and investors to invest in Rochester, Minnesota and join the vision to be part of the City’s growth as the medical capital of the world…” said Ebbie Nakhjavani, President and Chief Executive Officer of EKN. “With its elegant design, the Rochester Hyatt House hotel will stand as a shining testament of what can be achieved through collaborative public-private partnership.”

 

Rochester Hyatt House is slated for completion in Summer 2020.

 

“Having this project developed on an under-utilized property that meets the concepts in our city’s Comprehensive, Energy Action and Downtown Master Plans will serve as a catalyst for future development in the surrounding area,” said Rochester City Mayor Kim Norton.

 

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About PEG Companies:
Founded in 2003 by Cameron Gunter, PEG Companies is a leading commercial real estate development and investment firm based in Provo, Utah. PEG focuses on developing quality projects that create value and return for its investors, end users and communities. The PEG team offers considerable experience in project design, engineering, financing, city entitlements, tax incentives, construction management, marketing and property management and offers a strategic combination of acquisition, rehabilitation and development capabilities. PEG owns and manages more than 35 hospitality assets across the U.S. and Canada, with over 4,230 multifamily housing units, and additional office, retail and industrial space across the West. For more information about PEG, visit www.pegcompanies.com.
About EKN Development Group:
EKN is a real estate development firm specializing in hospitality, retail, mixed use, and high- density residential development. EKN delivers to its investors above market risk-adjusted returns through a premiere project portfolio and vast development expertise. The firm focuses on upscale and luxury lodging and lodging-anchored mixed-use projects in markets with high barriers to entry and growing and counter-cyclic demand drivers. EKN continues to deliver on its promise with currently $100 million of projects under construction and $660 million or 1,400 keys in various stages of development. For more information about EKN, visit https://www.ekndevgroup.com
About Hyatt House:
Hyatt House, a brand of Hyatt Hotels Corporation, launched in 2012 and offers more than 85 locations throughout the United States, China, Germany, Mexico, Turkey, and Puerto Rico. Inspired by extensive research into guest experiences, Hyatt House hotels offer services, amenities, upscale spaces and a casual, comfortable environment that reminds guests of home. For more information, please visit hyatthouse.com. Join the conversation on Facebook, and tag photos with #HyattHouse and #WhySettle.
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