The GEM Hotel, 300 W. 22nd St./ Image: Google Maps
NEW YORK CITY—Icon Realty Management closed on $30.5 million in refinancing provided by Madison Realty Capital. The loan is collateralized by the GEM Hotel at 300 W. 22nd St. in Manhattan's Chelsea neighborhood. The funds refinance previous debt and will be used to reposition the hotel with marketing, updated branding and property improvements.
“This deal provided MRC with the opportunity to refinance a successful and established hospitality asset with strong sponsorship and a new business plan aimed at making it even more competitive in the local market,” says Josh Zegen, co-founder and managing principal of Madison Realty Capital.
The GEM Hotel is a five-story, 30,948 square-foot, 4-star, luxury hotel. It was originally constructed in 1912 as a residential property. In 2007, Icon Realty converted it to a hotel. Located on the corner of Eighth Avenue and W. 22nd Street, the property features 57 feet of frontage along Eighth Avenue. At the time of the conversion, Icon Realty installed new mechanical systems and made structural upgrades to the building.
Going forward, the owner plans to increase revenue using an aggressive marketing strategy across internet booking channels and corporate accounts, while overhauling the branding. In addition, Icon Realty will substantially renovate the lobby, rooms, hallways and façades.
JLL's Aaron Appel brokered the financing. “MRC continues to deliver financing solutions for leading borrowers in New York and beyond,” says Appel. “Their ability to assess and underwrite large, complex transactions quickly has brought them significant repeat business, as well as new business from owners and developers.”
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
