Meridian, Eastdil Arrange $275M Financing for NYC Hotel
- Mar 26, 2013
By Scott Baltic, Contributing Editor
Meridian Capital Group L.L.C. and Eastdil Secured, both of New York, have negotiated $275 million in permanent financing for the $325 million acquisition of the fee position in New York City’s Milford Hotel, on behalf of a partnership between David Werner and Deutsche Bank Asset & Wealth Management, Meridian announced Monday.
The 10-year, fixed-rate, full-term interest-only CMBS loan was provided by Morgan Stanley Mortgage Capital Holdings L.L.C. Meridian’s Abe Hirsch, managing director, and Peter Steier, managing director and head of Equity Capital Markets, negotiated the deal along with representatives of Eastdil Secured.
The seller of the fee interest in the hotel, which is a.k.a the Milford Plaza Hotel, was a venture between Rockpoint Group, of Boston, and Highgate Holdings, of Dallas. The two had bought the entire property (the land, the hotel and a 26,000-square-foot retail condominium) in 2010 for about $200 million. Highgate reportedly will continue to manage the hotel. The retail unit is held in separate ownership.
Meridian noted that Morgan Stanley won the financing amid heavy competition from CMBS lenders based on “its ability to write a loan of this size and complexity,” as well as its speed and certainty of execution.
New York–based media, including TheRealDeal.com, reported in late February that Rockport and Highgate planned to sell the three components off separately, possibly reaping as much as $650 million in total. Eastdil Secured’s Adam Spies and Douglas Harmon reportedly were working on the deals, which would include a pending sale of the hotel itself to Ashkenazy Acquisition, of New York.
When it opened in 1928 as the Lincoln Hotel, the Milford was the largest hotel in New York City, and it remains among the city’s largest. Located at 700 Eighth Ave. in NYC’s Theater District and a block from Times Square, the hotel is currently undergoing a $140 million renovation.
Each floor’s guest rooms and hallways will each carry a theme inspired by a specific New York City neighborhood, including Central Park, Midtown, Chinatown, Lower East Side, SoHo, East Village and Greenwich Village. The hotel also features a remodeled 8,700-square-foot lobby, a 2,900-square-foot indoor/outdoor rooftop bar and a fitness center, and its infrastructure has been upgraded for greater energy efficiency.
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