The financing was provided by a consortium of banks headed by HSBC Bank USA, and includes a $40 million mezzanine loan provided by Transwestern Realty Finance Partners LLC. "We obviously faced strong head winds in this most challenging credit market of our times," says Miki Naftali, president and CEO of locally based El-Ad, in a prepared statement, "but the strength of El-Ad, the quality of the hotel, the success of the operation and the power of the Plaza brand prevailed."
The Plaza has 282 rooms and suites, including 152 hotel condominiums and 130 hotel rooms. The hotel is part of the nearly one-million-sf landmark purchased by El-Ad in 2004 for $675 million, as GlobeSt.com reported, from a partnership of Millennium & Copthorne Hotels Plc and Kingdom Investments. Millennium & Copthorne had purchased the Plaza in 1995 for $325 million. The restoration cost more than $400 million.
El Ad Group and Kingdom Holding did not return GlobeSt.com queries by deadline for further information. Michael Girimonti, senior vice president of Transwestern Realty Finance Partners' New York City office, who arranged the mezzanine transaction for Transwestern, says in a prepared statement that "we are pleased to have financed such a high quality investment in this environment in terms of the trophy caliber of the asset, superb location and its financial characteristics."
Transwestern managing director Thomas McCahill adds that the firm's focus now more than ever is to focus on "top quality, high performing assets in major markets, supported by experienced, well capitalized sponsors and this deal meets all those criteria."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
