David Moinian of Moin Development and Sam Nazarian of SBE landed the financing they need to complete their flagship SLS Hotel at 444 Park Avenue South, Commercial Observer has learned.
Ayush Kapahi and Gabrielle Simon of HKS Capital Partners secured a $109 million loan from Fortress Investment Group on behalf of the sponsors to recapitalize and restructure existing debt on the Midtown South redevelopment, according to the New York-based mortgage brokerage.
Spencer Garfield, a managing director in Fortress’s credit and real estate business, originated the new loan, which closed last week.
Puerto Rico’s Doral Bank provided construction financing for the upcoming hotel in 2012 and 2013, city records show.
Moin Development purchased a 14-story office building at the site in August 2011 for $45 million and partnered with Los Angeles nightclub operator and hotelier SBE to bring its successful SLS brand there. The $150 million project marks the first SLS hotel in New York City, following two completed properties in Miami Beach and Beverly Hills.
The redevelopment includes an additional six stories above the existing structure and a 6,000-square-foot sub-cellar. The boutique hotel, once completed, will contain a restaurant, rooftop bar and basement bar and lounge.
The SLS Midtown South hotel is scheduled to open next spring.
“HKS was instrumental in recapitalizing/restructuring the existing mortgage to allow for the project to utilize additional square footage,” Mr. Moinian said in a prepared statement provided to CO.