Square Mile Capital Management LLC has acquired a $31.8 million mezzanine loan in face value for financing the development of the future Moxy Hotel at 105-109 West 28th Street in Chelsea.
A subsidiary of Marriott International, who originated the mezzanine debt in December 2016, was the seller.
The completed property will consist of a 37-story building with 349 guest rooms and will be flagged under Marriott’s Moxy brand. It is anticipated to open in 2018.
The project is designed by Stonehill & Taylor, and located on 28th Street between 6th and 7th Avenues, between the Chelsea and NoMad districts. The Lightstone Group acquired the site in July 2014 and broke ground in April 2016. Bank of the Ozarks and a subsidiary of Marriott International provided $101.8 million in construction financing, including the mezzanine debt.
Square Mile vice president Eric Cohen said, “Our acquisition of the mezzanine loan on this project was a logical renewal of our relationship with Lightstone after we successfully exited our investment in the development of the Moxy New York Times Square.
“We believe the Moxy NoMad, once complete, will be well positioned to leverage its central location, strong food & beverage department, and the Moxy brand to appeal to modern travelers.”