The Real Deal New York

Sam Chang refinances Midtown West hotel with $215M loan

Deutsche Bank provided the loan

August 15, 2016 06:16PM
By Kathryn Brenzel

From left: Sam Chang, Gene Kauffman and rendering of 346 West 40th Street

From left: Sam Chang, Gene Kaufman and rendering of 346 West 40th Street

Developer Sam Chang has refinanced a Midtown West hotel that is currently under construction with a $215 million loan.

Deutsche Bank provided the loan for 346 West 40th Street, thus replacing a $52 million construction loan from the Bank of the Ozarks, records filed with the city’s Department of Finance show. Chang’s McSam Hotel Group is currently building a 612-key hotel on the site, which was formerly home to a parking garage. The new loan also includes a $131.5 million mortgage.

Chang filed plans for the hotel in March 2014, after buying the property for $26.3 million. Permit applications filed with the Department of Buildings show that the hotel will rise 36 stories and span roughly 177,600 square feet. Gene Kaufman TRData LogoTINY, Chang’s perennial collaborator, is designing the hotel.

The hotelier recently also landed a $115 million construction loan from the Bank of the Ozarks for another Midtown hotel he’s building at 338 West 36th Street. That hotel will feature two Marriott-brand hotels: a 280-room SpringHill Suites and a 286-room Fairfield Inn Suites. In June, he acquired a 99-year ground lease on a one-story retail strip in the Garment District for $27.1 million.

 

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