Levine and Birnbaum of Meridian arrange $85 million acquisition/construction loan

Meridian Capital Group, LLC negotiated $85 million in acquisition and renovation financing on behalf of the Chetrit Group and Clipper Equities for the firms' purchase and repositioning of the Hotel Chelsea. The 36-month, balance-sheet loan was provided by Natixis and features a LIBOR-based rate and a 12-month extension option. Ronnie Levine, a managing director based in Meridian's New York City headquarters negotiated this financing alongside Aaron Birnbaum, a partner and executive vice president at Meridian. This landmark property contains 175,900 s/f of above grade space and is located at 222 West 23rd St., between Seventh Ave. and Eighth Ave., in the Chelsea neighborhood. Chelsea has become one of New York City's most vibrant and desirable locations, benefitting from an influx of luxury residential buildings, high-end retailers, gourmet food purveyors and numerous restaurant and nightlife destinations. The Chetrit Group and Clipper Equities team is planning to upgrade and restore the Hotel Chelsea to the quality and aesthetics of other popular boutique hotels in the area while maintaining many facets of the hotel that locals and visitors cherish. The Chetrit Group owns The Empire Hotel on Manhattan's Upper West Side where they successfully executed a similar renovation and repositioning plan. "Meridian is very pleased to have advised the Chetrit Group and Clipper Equities, two leading value-add commercial property investors, on this important financing," said Mr. Levine. "By leveraging our strong lending relationships, Meridian was able to secure acquisition and construction financing from a balance sheet lender for this iconic asset, allowing for the development team to make significant improvements to the property and execute its business plan," he added. Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties.