NEW YORK CITY—Starwood Capital Group has secured $125 million of financing to retire the existing construction loan used to build the 1 Hotel Central Park, an upscale, eco-friendly boutique hotel that opened in August. United Overseas Bank provided the loan for the property in Midtown.
JLL managing director Dustin Stolly, international director Jeffrey Davis, EVP Kevin Davis and SVP Brett Rosenberg led the team on the transaction. The loan was secured amid a user-friendly climate for capital, Stolly tells GlobeSt.com EXCLUSIVELY.
"Starwood was able to retire the existing construction loan at a cheaper cost of capital," he says. “For assets in major markets with strong sponsorship, there's an emergence of capital for properties without trailing cash flow.”
Adds Jeffrey Davis, “New York's lodging market remains a top destination for travelers and 1 Hotel Central Park's location near numerous demand generators positions it well to deliver strong returns.”
The 229-room hotel features a number of amenities, including 1,600 square feet of meeting space, a 24-hour fitness facility, one of the largest green facades in New York, views of Central Park and a farm-to-table restaurant operated by celebrity chef Jonathan Waxman. The property also is within walking distance of Carnegie Hall, Time Warner Center, the Museum of Modern Art and Lincoln Center.
In general, adds Stolly, “Starwood Capital is making a huge push with this eco-friendly brand. This is the second of three properties under construction. The others are in Miami Beach and Brooklyn Bridge Park here. The company also plans to roll out the brand nationally and internationally."
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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.
