Lightstone secures $330M in financing for new Times Sq. hotel

David Lichtenstein-led firm acquired 485 Seventh Avenue for $182M in 2014

New York /
Jan.January 19, 2016 11:20 AM

David Lichtenstein’s Lightstone Group secured $330 million in financing for the conversion of a 16-story Times Square office building into a new hotel.

Lightstone received a $205 million construction loan from lender Square Mile Capital Management and another $125 million in capital from two unnamed institutional investors for its development of a Marriott Moxy Hotel at 485 Seventh Avenue.

The firm acquired the 235,000-square-foot Garment District office building, located between West 36th and West 37th streets, from the Eretz Group for $182 million in 2014.

The property was originally constructed in 1907 as a nearly 1,900-unit single-room occupancy building, according to the New York Observer, before being converted into retail and office space in the 1980s.

The new hotel will be the first under the Moxy brand to open in the U.S., though two more locations in New Orleans and Tempe, Ariz., are expected to open this year. The brand’s only current location is in Milan, Italy.

After selling 485 Seventh Avenue to the Lightstone Group, the Eretz Group’s Abe Talassazan filed suit against Lightstone claiming he was locked out of his office and synagogue in the building despite assurances that Eretz could remain at the property. [NYO]Rey Mashayekhi


Related Articles

arrow_forward_ios
News of President-elect Biden’s $1.9T stimulus plan held promise for employment and economic activity. (Getty)

Real estate stocks hold gains even as market doesn’t

Real estate stocks hold gains even as market doesn’t
Photo illustration of Aliz Hotel at 310 West 40th Street (Google Maps)

From lender with love: Bond-themed hotel sued for $40M

From lender with love: Bond-themed hotel sued for $40M
Chelsea Hotel with Ira Drukier and Richard Born (Getty)

Chelsea Hotel reno can resume after housing department drops fight

Chelsea Hotel reno can resume after housing department drops fight
325 West 33rd Street and Magna Hospitality CEO Robert Indeglia (Google Maps; Magna Hospitality)

Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M

Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M
Hilton Hotel in Times Square (Google Maps)

Hilton Times Square owner: “Take my hotel, please”

Hilton Times Square owner: “Take my hotel, please”
Some restaurants and hotels are partnering up to offer private dining in empty rooms, in an attempt to survive the economic fallout of the pandemic. (iStock)

Hotels turn empty rooms into private dining suites

Hotels turn empty rooms into private dining suites
Renderings of 159 Broadway in Williamsburg and Tillary Hotel at 85 Flatbush Avenue in Downtown Brooklyn (Photos via Stonehill Taylor; The Tillary Hotel)

Two Brooklyn hotel projects file for bankruptcy in one week

Two Brooklyn hotel projects file for bankruptcy in one week
City planning chairperson Marisa Lago (iStock; Global Philanthropy Forum)

NYC moves forward with plan for special hotel permits

NYC moves forward with plan for special hotel permits
arrow_forward_ios

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

Loading...