Ray, Cohen and Hirt of Mission Capital Advisors secure $33 million on behalf of Icon Realty for 81-key GEM Hotel Chelsea

According to Mission Capital Advisors, its debt & equity finance group arranged $33 million in financing on behalf of N.Y.-based investment and management company Icon Realty Management. The financing, a combination of CMBS and mezzanine, was arranged to refinance The GEM Hotel Chelsea, an 81-key, hotel located at 300 West 22nd St., managed by Gemini Real Estate Advisors. A Mission Capital team led by managing directors Jordan Ray, Jason Cohen and director Ari Hirt secured the financing, which has a five-year term. The first-mortgage financing comes in the form of a CMBS loan with 30-year amortization and interest-only mezzanine financing. "By leveraging Mission Capital's vast network of relationships with lenders around the country, we were able to secure this low-cost financing for The GEM Hotel Chelsea," Ray said. "In 2012, Mission Capital arranged $27 million in senior and mezzanine financing for the project. Now, less than two years later, we were able to arrange a $33 million loan. The heightened interest in the project is reflective of the value that Icon has added over the years and Mission Capital's successful marketing efforts." The GEM opened in 2008 after Icon completed a major gut rehab and repositioning. Since opening, the hotel has experienced improvements in occupancy and average daily rate. The GEM Hotel is situated in Chelsea, which is one of New York's most vibrant and sought-after neighborhoods. The property attracts significant demand from the neighborhood's leisure attractions, which include the High Line Park, Chelsea Piers, the Chelsea historic district, the Fashion Institute of Technology, trendsetting cafes and restaurants, notable art galleries and designer boutiques. In addition to 81 hotel rooms, the five-story building features retail space leased to Forager's Counter, a high-end gourmet market.