Allen Gross’s [TRDataCustom] GFI Development Group secured a loan package of $181.3 million for the newly completed Beekman Hotel and co-joined condominium tower, according to documents filed with the Tel Aviv Stock Exchange.
The 287-key Beekman, which opened in August 2016, revitalized the historic 10-story Temple Court building at 5 Beekman Street. The 51-story condo tower is still under construction.
According to GFI’s year-end report filed with TASE, the hotel component is valued at $300 million, of which GFI owns a 43.6 percent stake. GFI bought the landmarked property for $64 million in 2012.
The financing for the project is divided into a three-year loan of $125 million, backed by the hotel, and a one-year loan of $56.3 million loan backed by the condo portion of the project. The financing will replace the remaining balance on a previous $195 million construction loan on the property, and will be put toward buying out GFI’s equity partner, the hedge fund Elliott Management which owns a 56.4 percent stake.
The first loan carries a floating 4 percent interest rate over Libor until the hotel is complete, and 3.25 interest rate after that. The second loan carries a 4.25 percent interest rate over Libor. It will be repaid from the proceeds of the condo sales.
In the fourth quarter of 2016, the hotel was 73 percent occupied, according to a bondholder presentation, with an average rate of $400 per night. On the condo side, 48 of 67 units are in contract, at an average of $2,375 per square foot.
The loan is expected to close by the end of March, and construction is slated to wrap up in the fall of 2017.
It was not immediately clear who the lender was. A representative for Elliott Management declined to comment, and GFI did not respond to a request for comment.
GFI has also filed the necessary documents to begin a second bond issue on the Israeli market. GFI raised $91 million in their debut issue on the market in 2015.