Madison Realty Capital (MRC) provided a $16.50 million acquisition and construction financing package collateralized by a partially-constructed hotel development in Long Island City, Queens.
The borrower, an affiliate of Sam Chang’s McSam Hotel Group, acquired 38-04 11th Street and plans to construct a 148-key hotel comprising 55,630 square feet on the site.
The previous owner had secured approvals, cleared previous structures from the site, and completely built the foundation.
McSam, a leading hotel developer in New York, plans to complete construction of the building within approximately 15-18 months. McSam has already engaged Gene Kaufman as architect to increase the room count and to create a more efficient layout within the property.
MRC funded $4.00 million at closing for site acquisition, and has committed to fund an additional $12.50 million to complete construction of the project. The $16.50 million financing package MRC is providing represents approximately 70% of the total project cost.
“We’re pleased to have this opportunity to work with Sam Chang, a well-known hotel builder with a long track record of success,” said Josh Zegen, co-founder of MRC.
