The partnership behind a planned luxury hotel at 456 Greenwich Street in Tribeca has emerged from bankruptcy with a plan to kick start the project.
CBCS Washington Street LP (CBCS) announced it has secured $135 million in new debt and equity financing from Korea’s Hana Financial Investment to finish the project .
CBCS is a joint venture of Caspi Development and Mactaggart Family & Partners which leased the land for the 96-room hotel from the Ponte Family, which owns swathes of northern Tribeca.
However, it ran into trouble when the landlord reportedly balked at standard financing covenants and forced the venture into bankruptcy.
Joshua Caspi, co-general partner, of CBCS, announced on Monday that the project can see the light again as Hana Financial Investment antes up $135 million.
An additional $19 million is to be contributed by an equity co-general partner, APW, led by James Parks, an experienced hotel developer and operator along with Caspi Development.
The loan financing was arranged by Terence Park, principal of VI Group.
The hotel is being developed for the international Le Fouquet’s brand managed by the French operator Groupe Lucien Barriere.
Site preparation and foundation work is nearing completion, and a AECOM Tishman, has been engaged to build the development, with a completion date scheduled for 2022.
Fred B. Ringel, partner, Robinson Brog Leinwand Greene Genovese & Gluck, P.C., attorneys for the partnership, said, “All parties, including the ground lessor’s president, Vincent J. Ponte and his counsel at Kramer Levin, worked tirelessly and cooperatively to resolve outstanding issues and enable this exciting development to move forward.
“The partnership is confident that with this financing and additional equity in place, the project will proceed without delay.”
Teneo Capital served as investment banker and financial advisor to the partnership and provided a feasibility opinion as a foundation for the plan.
Chris Wu, president of Teneo’s Restructuring Group said, “The exit financing from Hana and the general partners with the landlord’s support is a testament to the intrinsic value of the project on one of the greatest development sites remaining in all of TriBeCa and it is sure to be an iconic and marquee hotel.”
The legal team also included, Rosenberg & Estis as the partnership’s special real estate and finance counsel, Greenberg Traurig as lender’s counsel, Robinson+Cole partnership’s construction counsel, Tarter Krinsky & Drogin licensing counsel.