By Al Barbarino
Commercial mortgage brokerage and advisory firm Deerwood Real Estate Capital has arranged $160 million in financing for the Gansevoort Park Hotel at 420 Park Avenue South in Manhattan.
The 10-year, fixed-rate loan will be used to pay off an existing construction loan on the property and was funded by Citigroup and Redwood Trust, said Abe Katz, managing partner at Deerwood.
“There was a synergy and like-mindedness between all the parties involved,” Katz said, adding that Deerwood has worked both with Citigroup and Redwood in the past. “From a financing standpoint, you want to be involved in this kind of an asset.”
Citigroup provided a $140 million, first mortgage loan, while Redwood Trust provided a $20 million mezzanine loan.
“We are highly focused on making commercial mezzanine investments on good properties in good markets to good borrowers,” said Mike McMahon, managing director at Redwood Trust.
Citigroup did not return calls seeking comment.
Location, asset quality, as well as the experience and reputation of a management company are extremely important when it comes to finding the right hotel projects, Katz said.
“Lenders are looking at the long-term viability of the property and its cash flow, and in this case, you’re talking about a top of the line management company with a lot of experience,” Katz said.
The 20-floor, 249-room Gansevoort opened in August 2010, a sister to the Gansevoort Meatpacking. The hotel features a heated indoor-outdoor pool, the Gansevoort Park Rooftop, a three-level rooftop, a full-service spa and fitness room, and unobstructed views of the empire state building.
The hotel is home to Ristorante Asellina, an Italian trattoria led by Marco Porceddu; Winston’s Champagne Bar; and a duplex corner retail store occupied by Lacoste USA.
“This hotel has become a destination place in New York City,” Katz said. “People are going there not only because it’s a great place to stay, but people in the city also go there to have their get-togethers and their parties.”
Deerwood, a 20-person company, was founded in 2009 and is active in all the main asset classes — multifamily, office, retail and hospitality.
“We’re excited about this transaction and about what we’ve accomplished in three short years in the New York City market,” Katz said.
He negotiated the deal along with Mark Silbersher and Russell Kimyagarov of Deerwood Trust.