Eastern Consolidated Arranges $121.35 Million in Construction Financing for New Hotel in Chelsea
NEW YORK, NY – January 2, 2018 – Eastern Consolidated’s Capital Advisory Division has arranged a debt and equity package totaling $121.35 million to finance the construction of a 45-story, 526-key hotel at 140 West 28th Street in Chelsea for the Mcsam Hotel Group led by Sam Chang.
Adam Hakim, Managing Director, and James Murad, Director, handled the transaction, which includes a $97.5 million first mortgage with Bank of the Ozarks, and $23.85 million mezzanine construction loan from Square Mile Capital Management LLC.
The deal is the 10th hospitality financing package arranged by Eastern Consolidated in the last 24 months, and fourth on behalf of the Mcsam Hotel Group.
“Contrary to market trends, Eastern Consolidated has successfully placed $723 million in hospitality financing in the last 24 months, including $463 million on behalf of the Mcsam Hotel Group,” Hakim said. “Sam 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. No doubt this new hotel in Chelsea will be just as successful.”
The 178,000-square-foot hotel will operate under two separate hotel flags under the Marriott brand—TownePlace Suites and Springhill Suites—with two separate lobbies and shared common areas. Planned amenities include a continental breakfast service area, meeting space, and exercise room.
The hotel, which is being built on a vacant parking lot on West 28th Street between Sixth and Seventh Avenues, is expected to open in 2019.
Situated in one of Manhattan’s most desirable neighborhoods, the hotel site is half a block from the FIT campus and near transportation hubs, iconic buildings, and exciting development projects, including Penn Station, Madison Square Garden, Hudson Yards, and the High Line.
Powered by a highly skilled team of over 100 brokers with a fluency in 15 languages, Eastern Consolidated is one of the country’s preeminent full-service commercial real estate firms. Through three core divisions—Investment Sales, Capital Advisory, and Retail Leasing—Eastern Consolidated serves an impressive roster of international and domestic institutional and private investors on real estate transactions of all sizes and across all property types. For more information, visit www.easternconsolidated.com and follow us on Twitter@EasternConsol.
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