The Real Deal New York

Sam Chang’s Chelsea hotel gets $121M construction loan

Financing comes from Bank of the Ozarks and Square Mile Capital Management
January 02, 2018 06:00PM

From left: Rendering of 140 West 28th Street, the current site, and Sam Chang (Credit: Eastern Consolidated and Google Maps)

Sam Chang scored $121.4 million in construction financing for his 526-key Chelsea Hotel.

The debt package includes a $97.5 million mortgage from Bank of the Ozarks and $23.9 million in mezzanine financing from Square Mile Capital Management, according to the Commercial Observer.

The hotel at 140 West 28th Street will stand 45 stories tall and span 178,000 square feet. It is due to open in 2019 under Marriott’s TownePlace Suites and SpringHill Suites brands.

The two banks have worked with Chang’s McSam Hotel Group before, financing a Doubletree at 346 West 40th Street, a SpringHill Suites at 338 West 36th Street and a Hyatt Place Hotel at 350 West 39th Street, CO reported.

Chang is also planning a 142-key hotel at 38-04 11th Street in Long Island City, and he landed a refinancing package of $83 million for his Holiday Inn at 585 Eighth Avenue in Times Square last year.  [CO] — Eddie Small