AIDEA Backs Downtown Anchorage Hotel with $25M Loan Participation

Begich and his co-developer, former Alaska revenue commissioner Sheldon Fisher, are renovating the former Aviator Hotel on Fourth Avenue, as well as the former Post Office Mall across C Street. Styled as the first JdV by Hyatt property in Alaska, the Wildbirch Hotel has 249 guest rooms and three suites. The project involves more than 150 jobs during construction and 245 permanent roles upon opening.

“When we explained the jobs we’re creating in construction and the long-term jobs of this hotel, it met the goals (and exceeded in a lot of cases) AIDEA’s goals of creating economic development, creating jobs for Alaskans. Creating an asset that’s not here today and gone tomorrow, but here today and here for many years to come,” Begich says.

In late May, the hotel will officially join the JdV by Hyatt brand, and a grand opening is scheduled for this summer. Already, the property has earned national attention, making Condé Nast Traveler’s prestigious “Best Places to Go in the US 2025” list. The hotel’s proximity to Ship Creek salmon fishing and the Iditarod ceremonial starting line position the property in the bullseye of a neighborhood revitalization effort.

“This project becomes a real symbol of how you can redevelop a city. This is a commercial redevelopment, and 95 percent of the investors in this facility are Alaskans. What we’re seeing is the private sector stepping up to the plate,” says Begich. “It’s not just about another bank loan, it’s about what are you creating.”

The project also utilized C-PACER funding to support sustainable building practices. The program enables the Municipality of Anchorage to facilitate private-sector loans for energy and efficiency improvements. In this case, Begich and Fisher were hoping to line up $12 million to pay for amenities like waste heat co-generation.

“AIDEA’s strength is our independence of the political process, and the financial stability that independence affords,” says AIDEA Board Chair Dana Pruhs. “This project—bringing together Alaska contractors and their staff, as well as participation by Northrim Bank and the vision of the project developers—[is] a clear example of how impactful our [loan participation] program is.”

Loan participation lets AIDEA buy up to 90 percent of a commercial loan from a bank, offering the borrower better terms. AIDEA has spent more than $400 million on loan participation since 2008.

Also joining the project as a strategic limited partner is Aleut Real Estate, a subsidiary of the Aleut regional corporation. Terms include a goal for hiring 10 percent of the hotel’s workforce from Aleut shareholders and descendants.

“This partnership reflects our long-term vision of investing in Alaska in ways that generate meaningful impact,” says Aleut CEO and President Skoey Vergen. “Through Wildbirch, we’re creating access, opportunity, and a launchpad for Aleut shareholders interested in hospitality careers.”