The Real Deal New York

Sam Chang refinances Midtown West hotel with $215M loan

Deutsche Bank provided the loan
By Kathryn Brenzel | August 15, 2016 06:16PM

From left: Sam Chang, Gene Kauffman and rendering of 346 West 40th Street

From left: Sam Chang, Gene Kaufman and rendering of 346 West 40th Street

UPDATED, March 13, 7:00 p.m.: Developer Sam Chang has refinanced two Midtown West hotels currently under construction with a $215 million loan.

Deutsche Bank provided the $131.5 million mortgage for 346 West 40th Street, thus replacing a $52 million construction loan from the Bank of the Ozarks, records filed with the city’s Department of Finance show. Chang’s McSam Hotel Group is currently building a 612-key hotel on the site, which was formerly home to a parking garage. 

The loan package also includes a $80 million refinancing of a construction loan for the hotel development 326-330 West 37th Street. Chang filed plans for the hotel in March 2014, after buying the property for $26.3 million. Permit applications filed with the Department of Buildings show that the hotel will rise 36 stories and span roughly 177,600 square feet. Gene Kaufman TRData LogoTINY, Chang’s perennial collaborator, is designing the hotel.

The hotelier recently also landed a $115 million construction loan from the Bank of the Ozarks for another Midtown hotel he’s building at 338 West 36th Street. That hotel will feature two Marriott-brand hotels: a 280-room SpringHill Suites and a 286-room Fairfield Inn Suites. In June, he acquired a 99-year ground lease on a one-story retail strip in the Garment District for $27.1 million.