The Lam Group can move ahead with plans to build its 465-key Virgin Hotel in NoMad after scoring a $222 million construction loan from the Shanghai Commercial Bank.
The development firm, headed by Hong Kong native John Lam, secured financing in late February for the 400,000-square-foot project at 1205-1227 Broadway, located between 29th and 30th streets, property records filed with the city Friday show.
A representative for the lender declined to comment, while the Lam Group could not be immediately reached.
The developer is also looking for EB-5 investors to fund the project. An investment memo indicates the developer plans to put $105 million of equity into the project, or just shy of 23 percent, and raise another $100 million from the program with the balance coming from the construction loan.
“[The developer] is capable of commencing the construction of the project without waiting for EB-5 investors’ money, with funds from construction loan as well developer’s own capital,” the memo reads. “Therefore the Regional Center will take investors on a rolling basis and ready EB-5 investors will not have to wait for other investors to make their [petitions].”
Lam has already demolished the group of buildings that sat on the development site it assembled catty-corner to the trendy Ace Hotel.