Prolific New York hotel developer Sam Chang took a $35 million CMBS loan from UBS Investment Bank to refinance his 201-key Holiday Inn New York JFK Airport Area hotel in Jamaica, Queens, Commercial Observer can first report.
The 10-year loan, which replaces debt from New York-based real estate fund manager Hudson Realty Capital, carries a fixed rate based off of the 10-year U.S. Treasury and a 25-year amortization schedule.
Meridian Capital Group Vice President Emanuel Westfried negotiated the refinancing on behalf of Mr. Chang.
“Meridian was able to make a market among traditional balance sheet lenders and the CMBS market in order to negotiate a highly-competitive, full-leverage loan for this well located hospitality asset,” Mr. Westfried said.
The two-year old Holiday Inn is located at 154-71 Brookville Boulevard, less than three miles from John F. Kennedy International Airport.
The hotel’s amenities include an on-site restaurant, 24-hour fitness center, business center, and 800-square-foot conference center
“When I make a loan I get a 9.5 percent loan,” Mr. Chang told CO by phone. “So when UBS makes me an offer for 4.75, I have to refinance it to save money.”
—Additional reporting by Lauren Elkies Schram