On Aug. 16, the borrower secured a $39.5 million bridge loan from investment firm Barings for 11 East 31st Street between Madison and Fifth Avenues. That sum replaces a previous loan of $34 million made by Cayman Islands-based lender Cybus Lending Corporation in 2015. HKS Capital Partners arranged the financing, according to a source with knowledge of the deal.
According to a spokesman for Quadrum, “the purpose of the loan is to return bridge financing and portion of capital to the investors.”
Through a joint venture with AREA Property Partners, the borrowers acquired and assembled the site in 2007 for $27 million, according to The Real Deal, before buying out AREA. The owners turned it into a 31-story, 89,753-square-foot hotel, which opened in November 2016.
Quadrum opened the hotel under the Arlo flag with joint venture partners Simon Baron, New York-based hotel investment company Eagle Point Hotel Partners and Keith Schwebel of KSNY, according to a Quadrum spokesman.
Matthew Baron, the president of Simon Baron Development, confirmed the deal closed, but declined to comment further. Simon Baron Chief Executive Officer Jonathan Simon did not immediately respond to a request for comment. A spokesman for Barings did not immediately return a request for comment.
Update: This story was edited to reflect that the financing replaced a previous loan as well as to include a comment from Quadrum Global and correct the hotel opening date.