Square Mile Capital Management originated an $80 million loan to refinance the Arlo NoMad, a 249-key luxury lifestyle hotel at 11 East 31st Street.
The financing was provided to a joint venture consisting of Simon Baron Development Group, Quadrum Global, KSNY, and Eagle Point Hotel Partners.
The transaction was arranged by Ayush Kapahi of HKS Real Estate Advisors.
Square Mile Capital Principal Sean Reimer said, “Arlo NoMad has been a successful hotel since it opened and is well positioned to meet the considerable demand for efficiently priced rooms in Manhattan’s NoMad submarket going forward.
“This was a very attractive lending opportunity, made even more attractive given the opportunity to expand our relationship with Simon Baron.”
Anoop Rustgi of Quadrum Global said, “New York City continues to be one of the world’s leading destinations for business and leisure travelers. Demand for rooms across the spectrum of pricing and luxury levels has been consistently strong in recent years, and we believe that boutique luxury hotels should be positioned to match or outperform others even if the overall market softens.”
Added Matt Baron of Simon Baron, “We are very proud of Arlo NoMad and its success to date in this sector, and look forward to meeting the lodging needs of travelers going forward. In addition, we are pleased to be able to broaden our relationship with Square Mile Capital through this financing transaction.”
Arlo NoMad was the brand’s second property to open in its now expanding portfolio of Arlo Hotels. Since launching in November 2016, Arlo Hotels have catered to an increasing population of travelers that prioritize efficient yet smartly designed rooms, flexible public spaces and an engaging communal atmosphere. Arlo Hotels serve as an answer to rising hotel room costs and inspire guests to venture out and explore the surrounding city.
In 2018, Square Mile Capital made a $138.5 million preferred equity investment in Simon Baron Development Group’s ALTA, a 43-story residential building located in the Long Island City neighborhood of Queens, NY.