The Real Deal New York

Flag Luxury lands $250M for NoMad Ritz-Carlton hotel

The lender is Atalaya Capital
By Christian Bautista | July 20, 2018 05:33PM

Paul Kanavos and 1185 Broadway (Credit: Getty and Google Maps)

Paul Kanavos’ Flag Luxury Group landed a $250 million loan for a planned Ritz-Carlton hotel in NoMad.

The building will be constructed on two adjacent parcels with the addresses 1185 Broadway and 29 West 28th Street. Flag Luxury filed permits for the property in 2016, with plans calling for a 164,400-square-foot building with 145 rooms. Construction is currently underway. The latest Department of Buildings filings for the building are for the installation of underground plumbing and installation of fuel tanks. Once it’s built, the tower is expected to be 40 stories tall with a height of 580 feet.

The lender for the new mortgage is alternative investment firm Atalaya Capital, according to records filed with the city on Friday. The company assumed the existing $50 million debt on the property and provided a $108.3 million building loan and a $91.3 million project loan.

Kanavos bought the vacant lots from commercial real estate firm Clark Wile and Mayer for $100 million in 2015. He has a history with Ritz-Carlton, having a developed a few hotels under the brand in Florida. The only other Ritz-Carlton in the city is at 50 Central Park Park South, according to the hotel chain’s website.

Flag Luxury Group did not immediately respond to requests for comment.