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.