Hotel developer Sam Chang has secured a $120 million package to finance the construction of new Times Square hotel.
Eastern Consolidated’s Capital Advisory Division arranged a debt and equity package for the construction of the 25-story, 520-key Hyatt Place Hotel at 350 West 39th Street for Changʼs Mcsam Hotel Group.
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 Square 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.”
Hakim noted that Chang is a proven sponsor and one of the largest hotel developers in the New York City, having completed the construction of over 70 ground-up hotels.
The 180,000 s/f hotel will feature 125-feet of frontage along 39th Street and will be the only Hyatt Place-branded hotel in the area.