Deutsche Bank provided acquisition financing to Qatar’s Constellation Hotel Holdings for its 80 percent stake in the InterContinental New York Barclay on Manhattan’s East Side from InterContinental Hotels Group.
The global banking and financial services company originated $185 million in debt with a total commitment of $240 million, a person familiar with the transaction told Mortgage Observer on background. The $55 million of additional proceeds will be funded for upgrades on the hotel over the term of the loan, which closed on March 31, that person said.
There are 22 hotel projects with 2,208 rooms in the pipeline in Brooklyn as of January, according to data provided by lodging industry benchmarking services firm STR to Commercial Observer. That represents a spike in room count year-over-year from 1,370, and an uptick in the number of hotels from 14.
Of the 22 current projects, four (with 212 rooms) are in the planning stages, six (with 609 rooms) are in the final planning stages and 12 (with 1,387 rooms) are in construction.
Construction crews are currently dismantling a two-story building at 180 Orchard Street on the Lower East Side, making way for an eventual Hotel Indigo that will rise 23 stories from the ground and bring 295 new hotel rooms to the transformed neighborhood.
Local bloggers have kept an eye on the address since 2009 during the protracted construction of the low-lying property now largely reduced to rubble. Rumors that a mini-mall would fill the space worried preservationists, but 180 Orchard Street lay vacant for years until it was announced in May of 2011 that Hotel Indigo, a “branded boutique” chain owned by Intercontinental Hotels Group, would move in.
An unnamed special servicer has retained Auction.com and Eastdil Secured to auction off New Orleans’ famed 693-key Astor Crowne Plaza Hotel on August 22. The hotel sits at 739 Canal Street, at the entry to the city’s French Quarter.
Bidding for the 900,000-square-foot hotel will start at $105 million, with the winning bidder having the option to enter into a new franchise agreement with InterContinental Hotels Group, rebrand it or strike out and operate it independently. The current franchise agreement with Crowne Plaza, an IHG brand, is short term.
130 Cedar Street—$70 Million
Bank of China provided a $70 million mortgage to borrower Cedar & Washington Associates for its building at 130 Cedar Street in lower Manhattan. The property features 181,297 square feet and is 21 stories tall. The mortgage price per square foot is $386.