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Capstone and Highgate score $130M loan to buy W hotel
Partners close on $190M purchase of 541 Lexington Avenue
Capstone Equities and Highgate pulled off roughly $130 million in financing to close on their purchase of the W Hotel New York on Lexington Avenue, sources told The Real Deal.
LoanCore Capital, a Connecticut-based asset manager, provided 70 percent of leverage on the $190 million purchase of 541 Lexington Avenue in Midtown East, according to sources familiar with the deal.
The 697-key property will now be operated as the Maxwell instead of the W.
Host Hotels & Resorts, a publicly traded hotel investment firm, entered contract in February to sell to Capstone and a then-unidentified equity partner. HEI Hotels was previously rumored to have equity in the deal.
Eastdil Secured brokered the deal and the loan.
Representatives for Capstone, Highgate and Eastdil declined to comment. LoanCore could not be reached.
Capstone — led by Joshua Zamir, Daniel Ghadamian and Justin Adelipour — partnered with the Khimji brothers’ Highgate last year to buy the Nyma hotel in Koreatown for $52 million.
Highgate was Manhattan’s most active hotel buyer in 2016 and 2017, having bought the 600-plus-room Affinia Manhattan on Seventh Avenue, the Royalton New York on West 44th Street, the Gansevoort Park Avenue, and the Nyma.