Meridian Capital Group arranged $88 million in financing for a Marriott-branded hotel-development site located in the Hudson Yards neighborhood of New York City on behalf of Marx Development Group.
The 24-month loan, provided by Mack Real Estate Credit Strategies, was negotiated by Meridian managing director Shaya Ackerman and SVP Shaya Sonnenschein, who are both based in the company’s New York City headquarters. This loan serves to recapitalize the project, and will cover final pre-development costs for the hotel. EB-5 funds totaling $66 million are already in the process of being raised through the sponsor’s regional center, Manhattan Regional Center, for the vertical construction of the project.
“The seamless navigation by Shaya Ackerman, and his excellent relationship with Mack is what allowed this transaction to close smoothly,” David Marx, principal of Marx Development Group, said in a statement. “The Hudson Yards project is years in the making, and we feel humbled to be a part of the group of developers, including The Related Group, Tishman Speyer, Brookfield and Moinian, who are manifesting this vision to reality.”
As part of MDG’s recent expansion, this transaction comes on the cusp of other significant closings for MDG, including signing Chase Manhattan Bank to a retail lease at its 399-key Marriott hotel on the corner of West 34th Street and Tenth Avenue, as well as the recent announcement of its acquisition of four skilled nursing facilities located in Indiana. Financing for the Indiana deal was also secured by Meridian.
Located at 450 Eleventh Avenue on the corner of West 37th Street in Hudson Yards, the hotel will span approximately 235,000 square feet in 42 stories and contain 441 rooms and 3,000 square feet of retail when completed. The property will also have a business center, lounge, restaurant, banquet rooms and outdoor meeting space. The site is located directly across from the Jacob K. Javits Convention Center, which is currently finishing up its $1-billion renovation and expansion. Additionally, it is part of the Hudson Yards Project, which is planned to include more than 18 million square feet of commercial and residential space, including office towers, shopping and restaurants. Construction on 15 Hudson Yards and 55 Hudson Yards, a condo and an office building, is scheduled to complete construction by the end of the year, while 50 Hudson Yards, also an office building, will be completed in 2022. Construction of the hotel is expected to conclude in late 2019.
Hudson Yards is bounded by West 42nd and West 43rd Streets, Seventh and Eighth Avenues, West 28th and West 30th Streets and Hudson River Park. The majority of the area remained under industrial and manufacturing zoning until real estate advocates, owners and developers successfully petitioned for zoning changes to allow for residential and other use. The district is represented by the Special Hudson Yards District, which was established to foster a mix of uses, provide publicly accessible space, extend the Midtown central business district by providing opportunities for office and hotel development, reinforce existing residential neighborhoods, and encourage new housing on Manhattan’s Far West Side.