Midtown South’s Arlo Hotel Gets $74M Refi From Square Mile [Updated]
The developers of a new hotel near Manhattan’s Madison Square Park found a $80 million refinancing last week from Square Mile Capital Management, according to city property records and information from Square Mile..
The deal, which closed on Wednesday, refinances three segments of debt that were outstanding on the books of Barings, the Charlotte, N.C.-based investment arm of Massachusetts Mutual Life Insurance Company. Prior debt included a $25 million building mortgage and a $9 million project loan that dated to 2013, as well as a $39.5 million gap mortgage originated in August 2017.
The new transaction comes as the hotel, the Arlo NoMad at 11 East 31st Street, approaches its third summer of operations. The 250-room property, owned by a development group led by New York City-based Quadrum Global, opened in doors in November 2016 in a new-construction building and has earned attention for its Midtown views and its rooftop bar. In a review, Britain’s Evening Standard said that the hotel “has been designed for the Instagram generation.” The New York Times noted that “The Arlo NoMad…regularly sells out its most expensive room category, window-walled Sky View rooms, based on the popularity of photos featuring guests seemingly embedded in the skyline.”
Although it lacks rooms service or a fitness center, the hotel offers free classes at nearby gyms and has a 24-hour convenience store on site. There’s also a well-appointed common area for working or playing board games and an upscale Italian restaurant, Massoni.
Over Memorial Day weekend, prices for rooms ranged from $263 per night for a unit with two bunk beds to $501 per night for a King-bed room with skyline views, according to the hotel’s website.
The company also runs a lodging in Soho, at 231 Hudson Street, and a South Florida outpost called Nautilus by Arlo at 1825 Collins Avenue on Miami Beach. It’s further planning to open a third Big Apple property near Hudson Yards, according to Travel Weekly.
“In Midtown West, it’s mainly big-box, branded hotels, and there’s a lack of hip factor,” Quadrum’s president, Foiz Ahmed, told the magazine. “We’re going to create something focused on the local experience. And I do believe that people who are in the know will want to stay at Hudson Yards.”
Representatives for Quadrum and Square Mile didn’t immediately respond to inquiries.
This story was updated to revise up the total loan amount from $73.5 million, after more information was provided by Square Mile.