Sam Chang Nabs Two Midtown Club Quarters Hotels for $153M
Lauren Elkies Schram Aug. 25, 2016, 5:40 p.m.
Hotel maestro Sam Chang of McSam Hotel Group has acquired two Club Quarters hotels with a total of 400 rooms in Midtown for $153 million, a source with intimate knowledge of the deal said. The seller was Rockwood Capital.
The hotels are Club Quarters Hotel, opposite Rockefeller Center and with an address of 25 West 51st Street, and Club Quarters Hotel, Midtown, at 40 West 45th Street, both between Fifth Avenue and Avenue of the Americas.
Chang will hold onto the hotels, which have long-term management contracts with Club Quarters, for their “cash flows,” the source said.
JLL’s Jeffrey Davis negotiated the sale, and JLL’s Kevin Davis brokered the financing for Chang.
Aareal Capital Corporation provided a $100.5 million senior loan and NorthStar Realty Finance gave a $16.5 million mezzanine loan to fund the acquisition, both with three-year terms and two one-year extension options.
Chang declined to comment. A spokesman for JLL didn’t immediately respond to a request for comment and nor did representatives for Rockwood or the banks.