NEW YORK CITY-Cushman & Wakefield announced Thursday that it advised affiliates of Hersha Hospitality Trust in the turn-key acquisition financing of the Hyatt Union Square Hotel in Manhattan. The $55 million floating-rate loan was provided by Natixis Real Estate Capital. The property is expected to open later this month.
The property is located at 132 Fourth Avenue, between 12th and 13th Streets. The Hyatt Union Square will feature 178 guestrooms atop a landmarked base building. The hotel also will offer a restaurant.
Jared Kelso, managing director, and Ernest Lee, director of Cushman & Wakefield's global hospitality group represented Hersha in the transaction. “This transaction demonstrates the robust appetite of balance sheet lenders for hospitality product,” says Kelso in the release. “The Hyatt Union Square will accommodate an underserved lodging submarket in Manhattan and demonstrates Hersha's continued ability to source unique acquisition opportunities.”
Ernest Lee adds in the announcement, “The combination of a strong business plan and best-in-class sponsorship generated significant interest from a variety of lenders. We are seeing banks and other balance sheet lenders increase allocations for transitional loans due to the competitiveness of CMBS pricing for stabilized assets.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
