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.
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.