Senior Debt on Vornado’s Crowne Plaza Hotel Hits the Market
The $195 million senior mortgage on Vornado Realty Trust’s Crowne Plaza Times Square hotel is up for sale, Commercial Observer has learned.
The loan is secured by the partial fee and partial leasehold interest in the property and the basis works out at around $245,000 per key or $231 per square foot, sources said.
Eastdil Secured’s Will Silverman and Nicholas Seidenberg are leading the sale.
Located at 1605 Broadway in the heart of Times Square between 48th and 49th Streets, the mixed-use asset comprises 795 hotel rooms, 196,300 square feet of office space and 17,800 square feet of ground-floor retail — including a new flagship Krispy Kreme location.
The property was refinanced in April 2018, with three lenders providing the $195 million in debt currently on the market. Deutsche Bank provided $75 million, Morgan Stanley lent $70 million and ICBC provided $50 million. The capital stack also includes a $86 million mezzanine loan —not included in the sale— bringing the total debt on the property to $281 million.
Hotel and retail assets have been hit particularly hard by the COVID-19 pandemic, but the property offers a diversified income stream from its office, hotel and retail components as well as from its Times Square signage and 159 parking spaces. Its signage components —on 48th and Broadway and 49th and Broadway — are licensed to Clear Channel, with the 48th Street location being utilized by Krispy Kreme.
In addition to its ground floor retail, New York Sports Club has a location within the hotel on the building’s 14th and 15th floors. American Management Association, Open Jar and Association for Computing Machinery occupy 196,324 square feet of its office space.
Officials at Vornado and Eastdil weren’t immediately available for comment.