NEW YORK CITY—Square Mile Capital Management has originated an almost $25 million mezzanine loan secured by a to-be-built hotel near Times Square and Hudson Yards.
The hotel, being developed by Sam Chang of McSam Hotel Group, will be located in the Hudson Yards zoning district. The mezzanine loan is part of the $108 million construction financing on the property. The senior construction financing was provided by the Bank of the Ozarks.
Late last year Chang signed a net lease for the hotel property at 346-354 W. 40th St., between 8th and 9th avenues. The 9,875-square-foot lot had been a parking garage but that's being demolished.
The project will serve the Times Square neighborhood, where room demand is already high, along with the Hudson Yards area, where demand is expected to explode during the coming years.
Says Square Mile managing principal Craig Solomon, “We're pleased to have the opportunity to assist McSam Hotel Group in this development. Our growing lending business aims to provide competitively priced financing solutions to best-in-class owner-developers and is a perfect complement to our opportunistic investment platform.”
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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.
