The Real Deal New York

Sam Chang lands $185M Deutsche loan for Midtown hotel project

Bank of the Ozarks assigns construction loan to German institution
By Konrad Putzier | January 10, 2018 06:25PM

The previous site at 338 West 36th Street, Sam Chang, and Matt Borstein

Sam Chang refinanced his Marriott hotel development at 338 West 36th Street with a $185 million loan package from Deutsche Bank, property records show.

As part of the deal, Bank of the Ozarks assigned an existing $99 million construction loan on the Garment District project, which it had issued in July 2016, to the German lender. Deutsche Bank is throwing in $86 million in gap mortgages.

Chang’s McSam Hotel Group bought the site, formerly the Postgraduate Center for Mental Health, for $50.8 million in 2014. The developer is building a 28-story tower that will include two Marriott-branded hotels.

Deutsche Bank declined to comment and Chang did not respond to a request for comment.

Chang told the Commercial Observer in 2016 that he expects construction to finish by April 2018.

The developer and Deutsche Bank are no strangers: In 2016, Chang landed a $215 million construction loan from the Frankfurt-based firm for his Hilton hotel development in Hell’s Kitchen.