Blackstone Backs Buy of Stewart Hotel With $159M Loan
Meridian Capital Group arranged a $158.8 million mortgage from Blackstone Group on behalf of a three-party joint venture that purchased Stewart Hotel in Midtown, according to a source with intimate knowledge of the deal.
Patriarch Equities, Sioni Group and Highgate are using the funds towards the $217.5 million buy of the 28-story, 611-room hotel from Pebblebrook Hotel Trust. The property, formerly Manhattan NYC Hotel, is located at 371 Seventh Avenue between West 30th and West 31st Streets. Its new owners rebranded it as Stewart Hotel upon closing on Dec. 20, as Commercial Observer reported earlier today.
The debt carries a Libor-based floating rate and a roughly 73 percent loan-to-cost ratio based on the sale price.
Meridian’s David Hayum and Tal Savariego of the brokerage’s New York City headquarters worked on the transaction.
“With its desirable location in the heart of Midtown West and its unique property attributes, the Stewart Hotel has untapped potential that will be realized over the next several years,” Savariego said through a spokesman. “We are proud to arrange acquisition financing for Patriarch Equities, Sioni Group and Highgate and look forward to the Stewart Hotel’s transformation as this proven team executes their business plan.”
Stewart Hotel was part of a six-property hotel portfolio previously owned by Pebblebrook and Denihan Hospitality Group. The two firms dissolved their partnership, and Pebblebrook held on to what is now called Stewart Hotel and the 252-room Dumont NYC at 150 East 34th Street.
A spokeswoman for Blackstone did not immediately respond to a request for comment, and a representative for Highgate was not immediately available for comment.
With additional reporting provided by Liam La Guerre.