Atlas Nabs $40M BOA Loan to Develop FiDi Luxury Hotel
By Mack Burke December 12, 2018 11:19 am
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Atlas Hospitality, in partnership with Morris Moinian’s Fortuna Realty Group, have landed a $40 million construction debt package from Bank of America to develop their 128-key luxury boutique hotel at 120-122 Water Street in the Financial District, Atlas announced yesterday.
The package included a $12.5 million senior mortgage, a $19.5 million building loan and an $8 million project loan, records show. The mortgages closed on Nov. 19.
Atlas has shepherded the project forward since its $20.1 million acquisition of 120-122 Water Street—between Wall and Pine Streets—in October 2015. Construction was supposed to commence for the 26-story building in 2016. Fortuna will be involved in development and will manage the property once it opens in 2020, according to Atlas.
In a joint statement, Moinian, Raj Guru, the principal of Atlas, and Balram Kakkar, the CEO of brokerage Pan AM Mortgage and Atlas’ director of finance, said, “We are thrilled to contribute a boutique hotel to the Financial District, which continues to evolve before our very eyes…We are committed to delivering a best-in-class hospitality experience that will fit in seamlessly with this incredible neighborhood while setting the standard for luxury, elegance, and the Manhattan nightlife.”
Hotel amenities will include a fitness center, a double-deck indoor and outdoor rooftop bar and lounge, and a full restaurant and bar in the ground-floor lobby, according to Atlas and information that Guru provided to CO at the time the planned hotel was announced in 2016.
Guru told CO in 2016, “This is a brand that gives us the flexibility of creating a boutique product and at the same time we are backed up by the central reservation system of [InterContinental Hotels Group]…The hotel is an IHG product.” Guru wasn’t immediately available for comment.
This partnership adds to Fortuna’s growing portfolio of boutique hotels. The firm received a $65 million construction loan from M&T Bank (MTB) in 2016 to build the 72,000-square-foot 176-key Hotel Hendricks at 25 West 38th Street. The firm is also planning a 37-story, 330-key luxury boutique hotel at 1150 Avenue of the Americas.
Officials at Fortuna did not immediately respond to a request for comment. A spokesman for Bank of America (BAC) did not provide comment before publication.
