Beach Point Capital Provides $120M Construction Loan on Times Square Hotel Project
By Andrew Coen July 12, 2023 2:58 pm
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A joint venture between Flintlock Construction and Atlas Hospitality has landed $120 million of construction financing to develop a 32-story voco-branded hotel in Times Square, Commercial Observer has learned.
Beach Point Capital Management supplied the three-year floating-rate loan with two one-year extension options for the sponsorship’s planned 401-key property at 711 Seventh Avenue, sources told CO.
The hotel will be operated by IHG Hotel & Resorts, which owns the Voco brand.
Demolition of the former retail site, on the corner of 48th Street, was completed in May, and construction is slated to last through the third quarter of 2025. The proposal was one of the last deals approved under previous zoning laws prior to new regulations implemented by New York City’s Department of City Planning requiring developers to undergo a lengthy special permit process to build hotels in the five boroughs.
Atlas Hospitality signed a 99-year ground lease at 711 Seventh Avenue last November for $58.9 million, PincusCo reported at the time. The development will mark the first newly built Voco hotel in New York City.
The Times Square hotel deal by Beach Point coincided with the Santa Monica, Calif.-based lender teaming up with Invictus Real Estate Partners and Maxim Capital Group on a $62.25 million construction loan for Seventh Street Development Group’s planned mixed-use project at 1730 Bedford Avenue in Brooklyn, to be anchored by a Lidl supermarket.
Officials at Beach Point Capital, Flintlock Construction and Atlas Hospitality did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
