HKS Capital Partners has secured a $34 million loan financing the construction of a hotel on a vacant site in the NoMad neighborhood.
Simon Development Group, KSNY, Eagle Point Hotel Partners and an affiliate of Cube Capital are turning the lot, at 11 East 31st Street,between Madison and Fifth Avenues into a new 250-room hotel. Doral Bank provided the loan.
In the summer of 2012, an affiliate of Cube Capital joint ventured with Simon Development Group, Eagle Point Hotel Partners and KSNY to recapitalize the development plan for a hotel.
In September of the same year, the Department of Buildings approved the proposal for a 30-story hotel building on the site.
Construction has begun, with the hotel opening expected for 2015. Commune Hotels & Resorts will manage the hotel, which is slated to have a 125-seat restaurant and a rooftop bar.
“It was a unique transaction that had all the variables lined up, which allowed us to secure such attractive financing for the borrowers,” said HKS partner Ayush Kapahi, who handled the transaction.
“Once again, Ayush and HKS worked diligently to get us the best terms for our deal,” said Simon Development Group Principal Matthew Baron. “They were there every step of the way even during document negotiations to ensure a smooth execution.”
Last year, HKS Capital secured $32 million in financing for the purchase of 393 West End Avenue, a rental building in Upper Manhattan, which was acquired by Simon Development Group and an affiliate of Cube Capital.