LoanCore Capital has granted Capstone Equities and Highgate a $170-million loan to finance the acquisition of the former W Hotel at 541 Lexington Avenue in New York.
The package includes a $140-million loan to finance the hotel purchase, a $20.5-million project loan and a $9.5-million construction loan, covering 90 percent of sale price. Capstone and Highgate agreed to pay $190 million to acquire the 700-room 14-story hotel, which was recently renamed The Maxwell. Real estate investment bank Eastdil Secured brokered the financing deal.
This is LoanCore's latest loan this month. The lender owned by Singapore's GIC and the Canadian Pension Plan Investment Board granted $100 million for commercial mortgage-backed securities refinancing of a warehouse in Brooklyn. The group also granted a loan totaling $42 million for a retail development in Midtown East along with another $27 million to finance a creative office building in Long Island City, Queens.
The hotel sale involves the second W location to change hands this week. Westbrook Partners acquired the 270-room W hotel in Union Square in a $168-million deal with Host Hotels & Resorts. The W brand’s current portfolio in New York includes two properties—one in Times Square at 1567 Broadway and another in the Financial District at 8 Albany Street—according to The Real Deal.