Wyndham Hotel Group’s under-construction flagship select-service hotel, called TRYP New York City-Times Square South, received a $13.6 million mezzanine loan late last month after the construction lender shut off funds for the project, officials said.
Boston-based UC Funding provided the loan — its first ever loan in New York City — to complete the 173-unit property, located at 345 West 35th Street. The deal will allow the developers to buy the necessary fixtures and equipment for the property and get a certificate of occupancy from the Department of Buildings.
“The construction lender stopped funding and they had a timeline to open up the property,” said Daniel Palmier, president and CEO of UC Funding. “They were under pressure to get someone to step up.”
Palmier declined to discuss the borrower, but Wyndham announced the hotel in October 2010, noting that the hotel was scheduled for completion by the second quarter 2011. In the announcement, Wyndham said the historic Rose building was owned by Eros Management Realty and being developed by Flintock Construction Services.
Ben Typin, senior market analyst at Real Capital Analytics, said the property has been up for sale for more than a year with various brokers. The Real Deal reported in 2009 that the 105,000-square-foot property was available for $24.5 million, and was marketed for a hotel, office or mixed-use purposes.
Typin said a number of boutique properties and development sites have been up for sale in the area in recent years, including Distrkt Hotel at 342 West 40th Street. Court records show that Flintock was the general contractor at that property, but a dispute between lenders and the developers was settled in 2010.
Property Shark records show a $16.5 million loan from Cathay Bank to Eros in 2008.
Eros Management officials did not return calls for comment. Wyndham and Flintock officials were not immediately available for comment.
Kim Bingham, executive vice president and chief credit officer of Cathay General Bancorp, the parent firm of Cathay Bank, declined to comment.