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
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
SL Green’s locks in big bank lease at Hudson Yards redevelopment site
SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
Moinian's Joseph Moinian and Bushburg's Jordan Franklin with rendering of Empire State Dairy Company residences (Moinian Group, LinkedIn, Bushburg)
Bushburg, Moinian snag $105M loan for East New York luxury project
Bushburg, Moinian snag $105M loan for East New York luxury project
(iStock)
Banks, tech among departures sinking Midtown office market
Banks, tech among departures sinking Midtown office market
Related CEO Jeff Blau and 455 Tenth Avenue (Chris Martin, Google Maps, iStock)
Related launches lodging for executives’ hybrid work
Related launches lodging for executives’ hybrid work
Major Food Group managing partner Jeff Zalaznick in front of 37 Hudson Yards (Major Food Group, Google Maps)
Major Food Group bringing members club to Hudson Yards
Major Food Group bringing members club to Hudson Yards
Tishman Speyer's Rob Speyer with 66 Hudson Boulevard (Tishman Speyer, Loopnet)
NewYork-Presbyterian takes 75K sf at Tishman Speyer’s Spiral
NewYork-Presbyterian takes 75K sf at Tishman Speyer’s Spiral
arrow_forward_ios

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

Loading...