A joint venture between Merchants Hospitality and Cachet Hospitality has secured a $30.4 million loan for the acquisition of 510 West 42nd Street.
The site will be the future home of the Playboy Club, which has been absent from Manhattan for the past three decades.
Previously, the property was the location for a three-story, 105-key gay hotel called Out. The developers are planning to build a 107-room hotel called Cachet Boutique New York. The Playboy Club will be on the hotel’s ground floor. The loan was provided by Silver Arch Capital Partners.
“Borrowers look to us when they can’t secure conventional lending… We, along with our partners, are pleased to help Merchants Hospitality kick-start its latest real estate venture,” said Silver Arch Capital Partners CEO Jeffrey Wolfer.
The previous location for the Playboy Club, at 5 East 59th Street, closed in 1986. The reincarnation of the gentleman’s club will contain a lounge bar, full-service dining room and a game room.
The developers plan to launch the hotel later this year. Planned amenities for the hotel, located at West 42nd Street between 10th and 11th Avenue, include wellness facilities such as an open-air Zen garden and an outdoor spa. There will also be a 2,000 s/f outdoor wine bar and event space called The Great Lawn. The property will also contain a restaurant and bar called Eden.
The Carlton Group’s Howard Michaels and Steven Weiss represented the borrower in the transaction.