Maverick buys $110 million note on Chetrit’s 34th Street hotel – Trade Observer
Maverick Real Estate Partners bought the $110 million note on Chetrit Groupthe 323-key hotel planned for 255 West 34th Streetsources close to the trade told Commercial Observer.
Maverick – a New York-based company that acquires and issues commercial real estate loans — bought the loan at a “slight discount” at par, sources said, although the exact purchase price could not immediately be determined.
The borrowing opportunity was not widely marketed, but rather “quietly bought” by Cushman and Wakefieldit is adam spies, Lauren Kaufman and Daniel OBriensources said.
According to city property records, Arbor Commercial Mortgage was the previous lender on the project. Arbor officials declined to comment.
A source said the loan was outstanding and “nearing maturity” at the time of the sale.
Construction is currently underway at the hotel, which sits in a prime location between Seventh and Eighth Avenues overlooking Moynihan train hall and in front of A Penn Plaza.
The 155,594 square foot hotel is designed by Stonehill Taylor Architects and planned as a Hotel Indigowhich is part of IHG hotels and resorts family of brands.
Like most other buildings under construction in New York during the COVID-19 pandemic, hotel development stalled in 2020, only to resume in late 2021. Chetrit reportedly recently invested an additional $25 million in the asset.
The developer has jointly purchased a set of commercial buildings in 251-263 West 34th Street with Cornell Property Management in 2014. The two companies then parted ways and split the assembly – each taking 80 feet of frontage – with Chetrit obtaining the 255 West 34th parcel and closing financing for the construction of its hotel and commercial asset. in 2017.
The property includes 15,000 square feet of retail space, with hotel rooms starting on the fourth floor.
Elsewhere in New York, Chetrit Group is having a busy second quarter. Just last week, the company secured $714 million in financing for the two Upper East Side rental towers it owns with Stellar management.
Chetrit Group officials could not be reached for comment. Officials at Maverick Real Estate Partners did not return a request for comment. A C&W spokesperson declined to comment.
Cathy Cunningham can be contacted at [email protected].