W Hotel Project Moves One Step Forward

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NEW YORK CITY-GlobeSt.com has exclusively learned that the Singer & Bassuk Organization closed $50 million in Commercial Liberty Bonds issued by the New York City Industrial Development Agency to fund the construction of the W New York Downtown Hotel & Residences at 123 Washington St. The 400,000-sf project being developed by the Moinian Group will rise adjacent to the World Trade Center site.

The 55-story, mixed-use project will contain a 217-room, full-service luxury W Hotel at its base, and 223 luxury condominium units on the upper floors. SBO previously arranged $305 million of construction and mezzanine loan financing with Credit Suisse, PB Capital Corp. and the Union Labor Life Insurance Co. to finance construction of the project for an affiliate of the Moinian Group. The $50 million of Commercial Liberty Bonds replaced a portion of the $305-million loan, allowing the developer to benefit from a lower financing cost both during the construction period, as well as when the hotel achieves a stabilized operating level.