Marcus & Millichap Capital Corp. arranged $46 million in construction financing for a Staybridge Suites located at 38-61 11th Street in Long Island City, Queens.
The construction financing was originated by Gary Sefcik, Iona Liu, Dan Lisser, and Rick Lechtman, of the firm’s Manhattan office, for New York real estate developer Teddy Li. Madison Realty Capital (MRC) provided the loan to finalize the new 240-key hotell.
As part of the loan, MRC secured additional pieces of collateral that the borrower pledged, including a medical facility in Flushing and additional condo units.
Staybridge Suites is the Intercontinental Hotel Group’s extended stay brand.
According to Sefcik, “Construction lenders have become selective on which hotel projects to back at this stage of the cycle. Long Island City has amongst the longest hotel stay nights of any neighborhood in New York City, while the submarket has a limited supply of extended stay hotels. In fact, the current submarket RevPar leader is an extended stay hotel.
“We utilized a private lender with the sophistication to understand the dynamics of this particular market, and with the capability of supporting the developer in delivering the project within its rapid timeframe.”
Josh Zegen, managing principal of MRC, added, “Long Island City remains one of the most popular neighborhoods in New York City for hospitality product and we expect this project to be well-received when it hits the market.