Alexico Group Seals $335M Refi for Manhattan’s The Mark Hotel
On your ‘Mark,’ get set, refi!
By Cathy Cunningham June 17, 2024 3:37 pm
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Izak Senbahar’s Alexico Group just landed $335 million in financing for The Mark Hotel, its five-star luxury property on Manhattan’s Upper East Side, Commercial Observer has learned.
News of the deal, which comprises a $300 million commercial mortgage-backed securities (CMBS) loan from Goldman Sachs, plus $35 million in mezzanine financing held outside of the CMBS trust, was disclosed via a Bloomberg CMBS pricing alert Monday.
The senior loan will comprise the GSMS 2024-MARK floating-rate, single-asset, single-borrower transaction.
Newmark (NMRK)’s Jordan Roeschlaub, Jonathan Firestone and Nick Scribani negotiated the debt, according to a source familiar with the transaction. Newmark could not be reached for comment.
“Luxury wrapped in fun,” is how Condé Nast Traveler describes the 16-story hotel, while Tatler deems it “as spectacular as hotels come,” according to The Mark’s website.
The 153-key, landmark building was purchased by Alexico Group and Simon Elias in 2006 and its interiors were designed by Jacques Grange. Today, it’s known for its fancy food and beverage offerings as well as its accommodations, with The Mark Restaurant, The Mark Bar and Caviar Kaspia — all by famed restaurateur Jean-Georges Vongerichten — on the premises. Guests also have access to an upscale fitness center, a Frédéric Fekkai hair salon and personal shopper service linked to Bergdorf Goodman.
As one of the swankiest hotels in New York City, and with its handy proximity to the Metropolitan Museum of Art, The Mark draws the crème de la crème of celebrities during the Met Gala each year, and has earned the tagline of the glitzy event’s “unofficial red carpet.” Roughly 60 celebs checked in this year, according to People, with previous year’s guests including Gigi Hadid, Cardi B and Dwyane Wade.
It’s also been featured in several television shows that called for a lavish backdrop, including “Succession.” At 10,000 square feet, The Mark Penthouse is the largest hotel suite in the U.S. today, with a 2,500-square-foot terrace overlooking New York City’s skyline — one that Logan Roy would likely approve of.
Alexico Group is no stranger to luxury, having created multiple notable developments over the years with internationally acclaimed architects. One example is its luxury condominium tower at 56 Leonard Street in Tribeca — also known as the Jenga building — which was the first skyscraper designed by Pritzker Prize-winning Swiss architects Herzog & de Meuron.
The Goldman CMBS financing is expected to close June 27.
It retires previous CMBS financing from 2022, placed in the CSMC-2022 MARK transaction, that was set to mature June 9, but had a fully extended maturity in June 2027, according to a Fitch Ratings presale report.
Now, like the hotel itself, all that glitters is gold in this recently closed deal, or Goldman Sachs at least.
Goldman Sachs declined to comment. Alexico Group didn’t immediately return a request for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
