Manhattan, NY AVANA Capital closed a $65 million construction loan to 842 Enterprises, Inc., providing funding to develop modular construction of the AC Marriott hotel located in Chelsea. The property will have 26 stories, 168 guest rooms, and will provide guests with plenty of amenities.
At completion, it will be one of the tallest modular hotels in the world. The hotel will be located at 842 Sixth Ave., within the NoMad (Madison Square North) neighborhood.
“We see great demand for a quality limited-service hotel in this location,” said Robert Chun, President of 842 Enterprises. “We are very committed to making this hotel a staple of this vibrant community. We are very pleased that we found in AVANA Capital a partner that believes in our vision and supported us in building the foundation of our family legacy. AVANA even invested in learning about steel frame modular construction where the units are being manufactured in Krakow, Poland.”
The project brings together the architectural expertise of architect and television host Danny Forster of Danny Forster & Architecture, best known as the host of the “Build it Bigger” series on the Science Channel and the construction expertise of The NYC-based Skystone Group who are the prime manufacturer of the modules.
“At AVANA Capital we pride ourselves with devising tailored lending solutions and support in building projects that pioneer new methodology for development,” said Sanat Patel, chief sales officer at AVANA Capital. “For this project, our chief credit officer Matt Hunt, visited the site and met with the project team consisting of the developer and the architectural firm, the general contractor and the management company. Concurrently, our CEO Sundip Patel visited the manufacturing plant in Krakow, Poland to get a first-hand look at the steel frame manufacturing and assess the risk controls that would meet the exacting standards of the city of New York building department.”
AVANA Capital’s ongoing financing for modular hotel construction continues and this project comes on the heels of $65 million for financing the dual brand Marriott hotel in Hawthorne, Calif. which was completed in 14 months and opened in Oct. 2018.
The AC Marriott is expected to create over 80 permanent jobs, as well as help support other NOMAD-area businesses, and generate an economic multiplier effect for the surroundings during construction and after opening.