Clarion Partners, a real estate investment manager, announced the closing of a mezzanine loan which it provided as part of the financing of the 35-story, 401-room Hilton Garden Inn located at 233-239 West 54th Street in Midtown.
“New York City boasts one of the strongest performing hotel markets and we’re very pleased to provide mezzanine debt on this newly-constructed, high- quality hospitality asset,” said Drew Fung, managing director and head of debt investments at Clarion Partners.
The investment, made on behalf of one of its fully discretionary clients within Clarion’s commercial real estate debt program, is expected to provide attractive, risk-adjusted returns over the long term with demonstrated sponsorship in the asset class, said the company.
The Hilton Garden Inn New York — the brand’s largest in North America and opened in January 2014 — is co-owned by the Moinian Group and local investor, Morad Ghadamian who purchased a 49.9 percent stake in the hotel from Starwood Capital Group in Feburary, according to The Real Deal.
At the time of the sale, a $175 million mortgage was secured on a 10-year, fixed-rate term from Morgan Stanley, according to Department of Finance records.