Moinian lends $65M to David Marx for Hudson Yards hotel

Financing replaces $60M loan secured last year from Related, Highbridge

New York /
Nov.November 04, 2015 02:40 PM

Developer David Marx secured a $65 million land loan from Joseph Moinian’s Moinian Group to finance construction of a 399-room Marriott Courtyard hotel that Marx is building in the Hudson Yards neighborhood.

The financing replaces a $60 million bridge loan that Marx received last year from the Related Cos., which is spearheading the 17 million-square-foot Hudson Yards megadevelopment, and Highbridge Principal Strategies. The hotel is slated to rise at 461 West 34th Street on the corner of 10th Avenue.

Marx secured the new financing from Moinain on Sept. 30 at an interest rate of 10 percent and used the proceeds to pay off the loan from Related and Highbridge, according to sources with knowledge of the deal.

While holding a similar interest rate to the previous $60 million bridge loan, the Moinain loan is meant to provide Marx with greater flexibility through a reduced prepayment penalty of around 1 percent – enabling the developer to refinance the project once it is out of the ground through a more traditional construction loan.

Both Marx’s Marx Development Group and the Moinian Group are among the New York-based real estate investment firms to have raised funds on the Israeli bond market through issuing publicly traded debt.

The Moinian Group closed its $361 million bond issuance in May – the largest such debt offering on the Tel Aviv Stock Exchange by a U.S. real estate player to date.

Marx, meanwhile, raised around $25 million on the Israeli bond market in September, as The Real Deal reported. A portfolio of assets including the Marriott Courtyard Hotel project in Hudson Yards backed Marx’s debt issuance in Tel Aviv.

In addition to the Marriott Courtyard, Marx is also planning another Hudson Yards hotel project – a 39-story, 438-key tower at 450 11th Avenue.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)

Facebook close to finalizing Hudson Yards office deal: report

Facebook close to finalizing Hudson Yards office deal: report
David Boies and 55 Hudson Yards (Getty, Google Maps)

Boies Schiller seeks to shed Hudson Yards office space

Boies Schiller seeks to shed Hudson Yards office space
Neiman Marcus at Hudson Yards and Geoffroy van Raemdonck (Getty)

Neiman Marcus exits bankruptcy $4B lighter

Neiman Marcus exits bankruptcy $4B lighter
Barclays CEO Jes Staley and Hudson Yards (Getty)

Barclays eyes big move to Hudson Yards

Barclays eyes big move to Hudson Yards
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
From left: Tishman Speyer CEO Rob Speyer, Fiorello LaGuardia and Robert Moses. Inset: Hiten Samtani and Charles Bagli (Getty Images, Wikipedia Commons)

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...