The Real Deal New York

Sam Chang scores $120M in debt, equity for Hyatt Place project

Bank of Ozarks, Square Mile Capital provided funds for 520-key hotel
By Mark Maurer | March 09, 2017 05:50PM

Rendering of the Hyatt Place hotel at 350 West 39th Street (credit: Gene Kaufman) and Sam Chang

Sam Chang secured a $120 million debt-and-equity package for his Hyatt Place hotel now under construction in the Garment District, he confirmed to The Real Deal.

The package includes a $95 million first mortgage from Bank of the Ozarks and $25 million in preferred equity from Square Mile Capital Management. His firm, McSam Hotel Group, is building a 25-story, 520-key property on the site, located at 350 West 39th Street.

Chang broke ground on the Gene Kaufman-designed project last fall. It is slated for completion in late 2018.

Eastern Consolidated’s Adam Hakim and James Murad brokered the debt-and-equity deal.

Representatives for Bank of the Ozarks and Square Mile Capital could not be reached for comment.

The 180,000-square-foot hotel is one of three rising on a block-long site between Eighth and Ninth avenues, formerly home to the digital advertising agency R/GA. Chang is building two of them, while Quadrum Global is developing a 26-story, 500-key hotel designed by Marvel Architects. Each firm paid $56 million for the site in 2014, records show.