Magna Hospitality Buys Garment District Hotel From Sam Chang for $274M
The two parties went into contract for the hotel in January for the 28-story property at 338 West 36th Street and closed the deal earlier this month, according to property records made public today.
The 576-key hotel will operate under two separate Marriott flags, with a 286-key Marriott Fairfield Inn & Suites and a 280-key Marriott SpringHill Suites. Construction of the hotel was completed early this year, a spokeswoman for the architect, Gene Kaufman, confirmed.
Chang’s McSam Hotel Group bought the property for $50.8 million in 2014, and Bank of the Ozarks financed the construction, as CO reported at the time. In January 2018, Chang refinanced the property with a $185 million loan package from Deutsche Bank (DB).
The Rhode Island-based Magna has transacted with Chang on a number of occasions. In 2018, Magna bought a McSam hotel development site at 140 West 24th Street for $113 million, where Chang had planned a 45-story, 526-key hotel.
Chang has several hotels under development, including a 542-key hotel at 144-02 35th Street near John F. Kennedy Airport, which will include a Marriott Hotel and a Residence Inn in the same building, and the Hyatt Place Hotel at 350 West 39th Street, which is currently under construction, as CO has previously reported.
Chang did not respond to a request for comment, and Magna did not reply to a request for comment.
With additional reporting provided by Lauren Elkies Schram.