Square Mile Capital Management announced that it has originated a $24.5 million mezzanine loan secured by a to-be-built hotel near Times Square and Hudson Yards.
The hotel, being developed by Sam Chang of McSam Hotel Group, will be located in the Hudson Yards Zoning District. The mezzanine loan is part of the $108 million construction financing on the property.
The senior construction financing was provided by the Bank of the Ozarks.
Chang has played an important role in New York’s hospitality industry, providing modern limited-service hotels that complement the city’s luxury offerings that are out of reach for many visitors.
The project being financed will serve the Times Square neighborhood, where room demand is already high, along with the Hudson Yards area, where demand is expected to explode during the coming years.
Square Mile managing principal Craig Solomon commented, “We’re pleased to have the opportunity to assist McSam Hotel Group in this development.
“Our growing lending business aims to provide competitively priced financing solutions to best-in-class owner-developers and is a perfect complement to our opportunistic investment platform.”
Last last year, Chang sought a demolition permit for 334 West 36th Street and tapped architect Gene Kaufman to design a limited-service hotel for the site,according to the COmmercial Observer.
At that time, he told the newspaper the hotel would likely have 500 rooms and exceed 20 stories.