24 Hour Local Real Estate News

Midtown Hotel Project Lines up Hefty Funding

Hyatt place Midtown The 25-story, 520-key Hyatt Place in Midtown is located at 350 W. 39th St.

NEW YORK CITY—Hotelier Sam Chang has done it again.

The prolific developer has secured a debt and equity package totaling $120 million to finance the construction a Hyatt Place Hotel in Midtown. The 25-story, 520-key property—being developed by Chang’s McSam Hotel Group—is located at 350 W. 39th St.

Eastern Consolidated’s capital advisory division Adam Hakim, managing director, and James Murad, director, handled the transaction, which includes a $95 million first mortgage with Bank of the Ozarks, and $25 million of preferred equity with Square Mile Capital Management.

“With a revitalized theater district, thriving hospitality industry, and constantly improving retail, the Times Square area is a magnet for tourists,” Hakim says. “New York City hosted a record 60.3 million visitors last year, which boosted the city’s hotel occupancy rate to an average 90.1 percent, and more visitors are expected this year.”

Hakim notes that Chang is a proven sponsor and one of the largest hotel developers in the New York City, having completed the construction of over 70 ground-up hotels.

The 180,000-square-foot hotel will feature 125-feet of frontage along 39th Street and will be the only Hyatt Place-branded hotel in the Times Square area. The Hyatt Place Hotel will offer guests amenities such as a restaurant with outdoor dining, a bar/lounge, bike and luggage storage, an exercise room, a ballroom, meeting spaces, and guest laundry services.

The property is located within the Hudson Yards submarket where the city’s rezoning has unleashed development plans for of up to 12 million square feet of Class A office, residential, hotel, retail, and cultural uses, 12 acres of public space, and a 750-seat public school. To accommodate the expansion, the No. 7 subway line was extended to a new terminal station at 34th Street and 11th Avenue.

 

Copyright 2017. ALM Media Properties, LLC. All rights reserved.