The Washington Trust Company has provided $8.5 million in financing to VVO Real Estate Holding, LLC to support the reconstruction of the Harborside Inn, a longtime landmark on Block Island. The property, located at 41 Water St. in New Shoreham, RI, sits directly across from the Block Island Ferry terminal and historically has combined hotel accommodations with street-level retail. The original structure was destroyed in a fire in August 2023, prompting a full redevelopment of the site.
Under VVO Real Estate Holding’s redevelopment plan, the rebuilt Harborside Inn will feature a 33-key full-service hotel. The hospitality component will be complemented by a leased restaurant space and 10 leased retail spaces, restoring the property’s mixed-use role along the waterfront. The reconstruction aims to reestablish the location as an active part of the island’s commercial core while bringing the building back into income-producing use.
Construction management for the project is being led by The Haynes Group, based in West Bridgewater, MA. The current schedule targets completion by May 2027, providing a clear delivery timeline following the loss of the prior structure. The rebuilding effort will return lodging capacity and street-level retail to an area that directly serves ferry passengers and visitors arriving to Block Island.
Commenting on the transaction, David Kmetz, vice president and team leader of commercial banking at Washington Trust, noted the historic role of the Harborside Inn on Block Island’s waterfront. He emphasized his long-standing relationship with the ownership group, having worked with them since they acquired the property in 2002, and highlighted their commitment to restoring the asset after the fire.
The new loan underscores ongoing bank participation in construction and reconstruction financing for hospitality assets with established locations and histories, even where projects are prompted by casualty events. For New Shoreham, the redevelopment of the Harborside Inn represents a step toward rebuilding key pieces of the local tourism and retail infrastructure tied to ferry traffic and the broader visitor economy.
