NEW YORK CITY-The construction loan for the luxury hotel made famous by E!’s Kourtney & Kim Take New York has been refinanced. Citigroup and Redwood Trust have provided a total of $160 million in financing for the Gansevoort Park Hotel at 420 Park Avenue South, according to Deerwood Real Estate Capital, who arranged the transaction.
Under the deal, Citigroup refinanced the hotel’s first mortgage for $140 million and Redwood refinanced the mezzanine debt for $20 million, GlobeSt.com has confirmed with Englewood Cliffs, NJ-based Deerwood using Real Capital Analytics data. The 10-year, fixed-rate loan, comprised of senior and mezz debt, will be used toward construction costs.
Abe Katz, a managing partner at Deerwood, tells GlobeSt.com that it was “a great time” to go to the market with the deal, given the hotel’s presence in the marketplace and prominence in the media. “This is a hotel that opened in August 2010, so it’s still in a ramp-up phase, but it’s starting to hit its stride,” he says. “It’s a real destination place. We found that a lot of lenders felt very good about that market and hotel market in New York City.”
The hotel—which opened its doors two years ago—is the second Gansevoort outpost in Manhattan, following the success of the trendy Gansevoort Meatpacking at 18 Ninth Ave. in the Meatpacking District. The 20-story, 249-room Park Avenue South location boasts an indoor/outdoor pool, a tri-level rooftop space, a full-service spa, and retailers and restaurants such as Lacoste USA, Marco Porceddu, Winston’s Champagne Bar and Ristorante Asellina.
The hotel has also generated buzz thanks to its exposure on national television. Realty TV stars Kim Kardashian and Kourtney Kardashian filmed on-location at the site for a spin-off series of Keeping Up With the Kardashians in 2011. “We feel that it is a trophy asset in a phenomenal location,” Katz says. “It’s a high-profile property, and there’s a lot of celebrities that stay there all the time.”
Katz worked with a Deerwood team of Mark Silbersher and Russell Kimyagarov on the deal.
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