Square Mile Lends $75M for Hilton-Branded Manhattan Hotel Development
By Andrew Coen June 23, 2021 11:04 am
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Square Mile Capital Management has supplied a $75 million preferred equity investment for the construction of McSam Hotel Group’s 1,046-key, Hilton-branded development in Midtown Manhattan, indicating its bullish outlook for recovery of New York City’s hospitality economy, the lender announced Tuesday.
McSam and Square Mile structured the transaction for 150 West 48th Street near Times Square in conjunction with Adam Hakim and James Murad of Meridian Capital Group. The deal marks Square Mile Capital’s fifth Manhattan hotel project alongside McSam.
“This was an attractive opportunity to bolster our participation in the post-pandemic recovery of the New York City hospitality sector,” Square Mile Managing Director Elliot Rattner said in a statement. “We are confident that travelers to New York will once again want to stay in the center of all the City has to offer. Overall, once complete, this midtown Manhattan property’s unique location, brand affiliations and diverse room offerings will create a compelling set of options for a variety of traveler segments.”
S3 Capital also provided a $230 million senior construction loan for the property.
Officials for Great Neck, N.Y.-based McSam did not immediately respond to a request for comment on the financing.
When completed, the property will feature a Hilton-branded hotel development consisting of a 288-key Home2 Suites, 358-key Hampton Inn and 400-key Motto. Its amenities will include restaurants, lounges, coffee shops, breakfast dining facilities, exercise rooms, select meeting spaces, laundry facilities, and a shared rooftop lounge.
Construction is underway with the project’s opening expected by the end of 2022.
“The funding of this preferred equity investment is a testament to the market’s increasing confidence in a strong recovery of the New York City hospitality industry,” Hakim said in a statement. “A combination of factors such as a prime Times Square location, top Hilton hotel flags, and best-in-class developer sponsorship were all attractive features of this transaction.”
