Hersha and Cindat close $385M loan for Manhattan hotel portfolio

Loan covers Midtown and Lower Manhattan hotels

TRD New York /
Feb.February 12, 2018 05:00 PM

Jay Shah and the Holiday Inn Express in Times Square (Credit: Hersha and Holiday Inn)

Hersha Hospitality Trust and Cindat Capital Management secured a $385 million loan from UBS and China Merchants Bank for its portfolio of seven hotels in Manhattan, according to documents filed with the Securities and Exchange Commission.

The properties covered in the transaction include the Holiday Inn Express Times Square at 343 West 39th Street, Candlewood Suites Times Square at 339 West 39th Street, Hampton Inn Times Square at 337 West 39th Street, the Hampton Inn Chelsea at 108 West 24th Street, Hampton Inn Herald Square at 59 West 35th Street, Holiday Inn Wall Street at 51 Nassau Street and the Holiday Inn Express at 126 Water Street. Together, they have 1,087 hotel rooms.

The package is composed of a $300 million floating-rate mortgage and an $85 million mezzanine loan. Both components have a term of 36 months and are subject to two 12-month extensions. The deal has not yet hit property records.

The previous lender was French bank Natixis, records show.

Through this refinancing we have lowered the weighted average cost of borrowing, increased the duration of our debt and entered into a capital structure that provides the joint venture significantly more financial flexibility going forward. In addition, we have also successfully redeemed all of our preferred equity in the joint venture, providing Hersha with additional capital to pursue other opportunities in our existing portfolio,” Hersha CEO Jay Shah said in a statement.

Hersha and China-based Cindat formed a joint venture for the portfolio in 2016. Cindat paid $571.4 million for a 70 percent stake in the package, with Hersha retaining a 30 percent stake. The firm, which is backed by China Cinda Asset Management and Taikang Life Insurance, also owns 565 Broome Street, 5 Beekman Street and 125 Greenwich Street.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Amazon leases nearly 154 million square feet of warehouse space compared to the 4 million square feet it owns (Credit: iStock)

How Amazon became the leasing king of e-commerce

Blackstone Chairman Stephen Schwarzman (Credit: Blackstone via YouTube)

It will make you laugh, it will make you … cringe: Blackstone’s latest holiday video

Paul Volcker (Credit: Getty Images)

Paul Volcker, Fed Chair who infuriated real estate, dies

Renderings of The William Vale and Denizen Bushwick with a Tel Aviv Stock Exchange ticker

All Year eyes sale of William Vale to pay off bonds

Redwood Trust’s CEO Christopher J. Abate (Credit: iStock)

Wall Street is collecting rent payments

From left: 1407 Broadway, 805 Third Avenue and 195 Broadway (Credit: Google Maps)

These were the 10 largest Manhattan real estate loans in November

arrow_forward_ios
Loading...