The deal, which closed on Wednesday, features a first-mortgage conversion option for the borrower.
“We’re pleased to provide this customized financing to suit the needs of the sponsor, an experienced New York builder and repeat client,” Stuart Boesky, the chief executive officer of New York-based Pembrook, said in prepared remarks.
Mr. Chang’s prolific hotel group purchased 338 West 39th Street between Eighth and Ninth Avenues for $22.5 million in January 2015, as CO reported. The developer is in the process of demolishing the 12-story industrial loft building on the site, and in 2017 will commence construction of a 506-key Hyatt Place Hotel.
“In the current financing environment, it can be challenging for borrowers to secure funding for non-cash-flowing assets like development sites regardless of their location and value, so it’s gratifying to be able to execute this deal,” Mr. Boesky added. “This well-located site should be positioned to succeed given the developer’s attractive basis and overall growth of the Hudson Yards area.”
It was not immediately clear who Mr. Chang’s partner on the project was. Inquiries to Mr. Chang were not returned.