Chetrit sews up $152M loan for Hotel Carter in Times Square

JPMorgan provided the bridge financing

Feb.February 27, 2018 10:55 AM

Meyer Chetrit and 250 West 43rd Street

The Chetrit Group has locked down financing for its Hotel Carter property in Times Square, sources told The Real Deal. JPMorgan Chase provided a $152 million bridge loan, that is expected to be upgraded to a construction loan in the $200 million range, sources said.

The developer, led by Joseph and Meyer Chetrit, paid $192 million for the 600-key hotel at 250 West 43rd Street in 2014, and scored a $129 million acquisition loan from Apollo subsidiary Athene Annuity and Life Company in early 2015. The Chetrit Group purchased the property from the estate of Tran Dinh Truong, a controversial Vietnamese emigre. At the time, experts said the hotel would need at least $125 million worth of safety and infrastructure upgrades.

Maverick Commercial Properties’ Adi Chugh brokered the JPMorgan financing, which closed Monday. He was unavailable for comment. JPMorgan declined to comment.

Adi Chugh

The bank has ramped up its commercial real estate lending activity in New York in recent months. It was the lead lender in a consortium that provided a $900 million loan to Extell Development for the construction of Central Park Tower. It also agreed to loan $850 million to Macklowe Properties for the residential conversion of One Wall Street. JPMorgan overtook Deutsche Bank as the top CMBS issuer in the country in 2016, underwriting $12 billion worth of loans, according to Commercial Mortgage Alert.

The Chetrit Group, in partnership with Keith Rubenstein’s Somerset Properties, is still in the market for a construction loan of up to $500 million for a 1,300-unit rental complex in Mott Haven. It is said to be the largest financing being sought for a private development project in the Bronx.

And in other news on the Times Square hotels front, a partnership led by Steve Witkoff just sold its interest in the Times Square Marriott Edition to a joint venture between Maefield Development and Fortress Investment Group, in a deal valuing the property at $1.53 billion. Witkoff and his partners will continue to develop the hotel on behalf of Maefield and Fortress, sources told TRD.

Related Articles

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

RCP CEO Richard O’Toole and Related CFO David Zussman (Credit: O’Toole via Westchester Magazine and Zussman via Related)

Related tries to calm Israeli investors after market panic

Apollo Commercial Real Estate Finance CEO Stuart Rothstein and RedSky Capital principal Benjamin Bernstein (Credit: Apollo and ICSC)

Brooklyn development’s $150M loan falls into default

EB-5 could be brought back to life (Credit: iStock)

Could a pandemic bring EB-5 back to life?

Nonbank mortgage lenders could be left holding the bag for as much as $100 billion in late payments (Credit: iStock)

“It’s going to be a liquidity tsunami:” Mortgage firms gear up for missed payments

(Credit: Pixabay)

REIT declines outpace stock market amid shutdowns nationwide

Governor Andrew Cuomo (Photo by Spencer Platt/Getty Images; iStock)

Cuomo’s foreclosure, mortgage moratorium has no teeth