Walker & Dunlop completed a $155 million refinancing deal for The Lexington Hotel, a historic landmark in Midtown Manhattan. Acting as the exclusive advisor to Lexington Hotel Owner LLC, a joint venture between MCR, Island Capital Group and Three Wall Capital, Walker & Dunlop secured the financing through lender Hudson Bay Capital.
Initially completed in 1929, The Lexington Hotel has undergone extensive renovations and conversions over the years, culminating in its transformation into a Marriott Autograph Collection hotel in 2013. The hotel was acquired by the sponsors in 2021 and is a testament to timeless elegance and modern luxury in one of New York City's most coveted locations.
The Walker & Dunlop New York Capital Markets team, led by Jordan Casella, Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz and Christopher de Raet, arranged the transaction. The team secured a bridge facility to refinance The Lexington Hotel's existing debt.
"We are thrilled to have facilitated this transaction on behalf of sponsorship for such an iconic landmark," Casella, lead broker for the deal and managing director at Walker & Dunlop, said in a statement. "This transaction not only underscores the resilience of the New York City hospitality market but also reaffirms the enduring appeal of this city as a major tourist and business destination. The quality of the asset, along with the strength of the sponsor team, generated significant interest from the capital markets for the refinance.”
The 28-story hotel, located at the corner of Lexington Avenue and 48th Street, has 725 keys, including six specialty suites, such as the Norma Jeane Suite, where Marilyn Monroe lived with then-husband Joe DiMaggio. Various amenities, from The Stayton Room bar and restaurant to 3,000 square feet of meeting space, cater to business and leisure travelers. On-property retail amenities such as Crunch Fitness and Starbucks.