NEW YORK CITY—The Related Cos. and Highbridge Principal Strategies have agreed to lend developer David Marx $60 million for his plan to build a 399-room Marriott Courtyard hotel on the corner of West 34th street and 10th avenue, according to Crain's New York Business. In total, the project is slated to cost $181 rooms and offer 385 rooms, GlobeSt.com previously reported.
Marx is using funds raised through the government's EB-5 program to finance the project. In the meanwhile, the money from Related and Highbridge is being used as a bridge loan to do predevelopment work. Securing capital through the EB-5 program, under which developers can procure project funding from foreign investors in exchange for a green card, can be a lengthy process.
Related and Highbridge are providing the $60 million loan through a joint venture they formed last year to manage a new credit platform that will invest $800 million in real estate debt. So far, the JV has allocated about $300 million of its coffers. The platform aims to provide bridge loans and other specialty financing to development projects and other properties that are in transition, Crain's notes.
Marx is building two hotels at Hudson Yards. In addition to his site on West 34th Street, Marx is building a 438-room hotel tower on West 37th Street across from Javits Center. Hudson Yards is the largest private real estate development in the history of the United States and the largest development in New York City since Rockefeller Center. The 28-acre site will include more than 17 million square feet of commercial and residential space, more than 100 shops and restaurants, approximately 5,000 residences, a unique cultural space, 14 acres of public open space and more.
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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.
