The Real Deal New York

Aby Rosen’s RFR lands $140M loan for Times Square hotel

The lender is Germany-based Aareal
By Christian Bautista | April 10, 2018 01:00PM

Aby Rosen and the Paramount Hotel (Credit: RFR)

Aby Rosen’s RFR Realty secured a $140 million loan for the Paramount Hotel in Times Square.

The lender for the new mortgage is Aareal Capital Corporation, a subsidiary of German lender Aaereal Bank AG, according to property records filed with the city Tuesday. Aareal assumed the $100 million unpaid balance on the property from Citibank and provided a $40 million gap mortgage.

RFR bought the property, at 235 West 46th Street, for $275 million in 2011. After the acquisition, the firm spent $50 million renovating the 18-story, 597-key hotel. The overhaul touched the Diamond Horseshoe, a former Broadway theatre that was converted into a nightclub. Rosen spent $20 million renovating the subterranean event space for the two-year run of theater production Queen of the Night.

Rosen recently expanded his hospitality portfolio by acquiring the former Jehovah’s Witnesses’ residential hotel at 90 Sands Street.  The property, which changed hands in a $135 million transaction, was part of a six-building portfolio that RFR, Kushner and LIVWRK bought in 2013.

A spokesperson for RFR did not immediately return a request for comment.