Hakim and Murad of Eastern Consolidated arrange $120 million; Bank of the Ozarks and Square Mile Capital provide loans to Mcsam Hotel Group

March 21, 2017 - Brokerage

Rendering, Hyatt Place Hotel, 350 West 39th Street - Manhattan, NY

Manhattan, NY Eastern Consolidated’s Capital Advisory Division has arranged a debt and equity package totaling $120 million to finance the construction of 25-story, 520-key Hyatt Place Hotel at 350 West 39^th St. for the Mcsam Hotel Group led by Sam Chang.

Adam Hakim, Eastern Consolidated

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 LLC.

“With a revitalized theater district, thriving hospitality industry, and constantly improving retail, the Times Sq. area is a magnet for tourists,” Hakim said. “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.”

The 180,000 s/f hotel will feature 125 ft. of frontage along 39^th S. and will be the only Hyatt Place-branded hotel in the Times Sq. 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 development plans for of up to 12 million s/f 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 34^th St. and 11^th Ave.

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