Big Plans for NYC’s Out Hotel
- May 03, 2017
In a recent deal brokered by The Carlton Group, Out Hotel in Manhattan landed a $30.4 million purchase loan funded by private lender Silver Arch Capital Partners. Carlton Group’s Chairman Howard Michaels and Managing Director Steven Weiss acted on behalf of the owner, Merchants Hospitality Inc., which acquired the long-term lease of 510 W. 42nd St. last summer from former owners Parkview Developers for a reported $40 million, public records show.
“We needed a lender who could think outside the box. Jeffrey Wolfer, president & CEO of Silver Arch Capital Partners, was able to quickly underwrite the deal and deliver on a first mortgage bridge loan for the acquisition and renovation of the Cachet Hotel NYC and the iconic Playboy Club,” Weiss said in prepared remarks.
The owner joined forces with lifestyle branding and management company Cachet Hospitality Group and plans to redevelop the property, rebranding it to Cachet Boutique New York Hotel. The new facility’s ground floor will harbor The Playboy Club, which will return to the building after having closed in 1986. Cachet will deliver a lounge bar, a full-service dining room, a game room and a retail shop. Changes are set for completion this year.
The 105-key, three-story hotel’s current amenities list includes on-site dining, a fitness center with spa and a business center. According to PropertyShark data, the 78,333-square-foot hotel comprises a total of 14,000 square feet of retail space. However, after the rebranding, it is expected to include art-deco décor, high-end wellness facilities, an open-air Zen garden, outdoor spa and Jacuzzi, a 2,000-square-foot indoor-outdoor wine bar and event space known as Great Lawn and on-site dining provided by signature restaurant Eden.
Located in Manhattan’s Hell’s Kitchen neighborhood, the asset is in the cultural center of the city, just block away from Hudson Yards, Times Square, Broadway theaters, Javits Center and Central Park.
Image courtesy of The Out Hotel