GE Capital Real Estate has provided $100 million in take-out financing to a joint venture between Rockwood Capital, Albanese Development Corporation and The Buccini/Pollin Group for a new hotel near Times Square, Mortgage Observer has first learned.
The loan replaces construction financing for the recently opened Hilton Homewood Suites located at 312-318 West 37th Street between Eighth and Ninth Avenues.
“It’s a great example of how GE Capital Real Estate is focusing on growing its lending business with great sponsors,” a GE Capital spokesperson told MO. The refinancing carries a five-year term, the spokesperson said.
The borrowers, listed in city records as West 37 Street Partners LLC, received $59.2 million in construction financing from US Bank in 2012. Sovereign Bank provided a $25 million commitment to the loan with the balance retained by US Bank.
The Buccini/Pollin Group, a privately held real estate acquisition, development and management company, has experienced recent growth due to the opening and acquisition of three new hotels, one of which included the Hilton Homewood Suites on West 37th Street, according to a press release issued last month by affiliated hotel management company Pollin/Miller Hospitality Strategies.
“We added more than 929 rooms to our hotel portfolio in the 2014 second quarter, the most in our 18-year history,” said Dave Pollin of The Buccini/Pollin Group in a written statement. “The Homewood Suites by Hilton is both the brand’s and our first property in Manhattan, the nation’s most dynamic market, which is underserved in the extended-stay segment.”
The J.V. partners acquired the parcel of land on which the Hilton Homewood Suites now sits for $20.8 million in August 2011, property records show. The sellers are listed as Wenner Family Limited Partnership and RJL Larkin LLC.
Requests for comments to The Buccini/Pollin Group, Albanese Development Corporation and Rockwood Capital were not returned in time for publication.