McSam Hotel Group Nabs $115M Bank of the Ozarks Construction Loan on West 36th Street



Sam Chang’s McSam Hotel Group has landed a $115 million loan from Bank of the Ozarks for construction of a 28-story, 566-key hotel operated under two Marriott flags at 338 West 36th Street, Commercial Observer has learned. The construction loan is for five years, Chang said.

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In August 2014, Chang picked up the building, also with an address of 334 West 36th Street, from the Postgraduate Center for Mental Health for $50.8 million, as CO previously reported. Construction commenced 30 days ago, Chang said, and the Gene Kaufman-designed hotel will be completed in 21 months.

Adam Hakim and James Murad of Eastern Consolidated’s Capital Advisory Division arranged the debt package.

“This 191,000-gross-square-foot hotel, which will feature a 280-key Spring Hill Suites on the first 12 floors and a 286-key Fairfield Inn & Suites on the upper 14 floors, will be a great addition to the Times Square/Hudson Yards area,” Hakim said in prepared remarks, noting that the hotels will share a lobby, fitness center, meeting room, bar/lounge and dining area with buffet.

Bank of the Ozarks didn’t immediately respond to a request for comment.

With additional reporting provided by Danielle Balbi.