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Qatari firm lands $290M loan for Times Square hotel

Mack Real Estate is the lender

Tamim bin Hamad Al Thani and the Manhattan hotel at 790 7th Avenue (Credit: Wikipedia and Manhattan Hotel)
Tamim bin Hamad Al Thani and the Manhattan hotel at 790 7th Avenue (Credit: Wikipedia and Manhattan Hotel)

UPDATED, July 23, 2:47 p.m.: A company controlled by Qatar’s ruling family landed a $290 million loan for the 689-key Manhattan at Times Square hotel.

The firm, Al Rayyan Tourism Investment Company (ARTIC), is a subsidiary of Al Faisal Holdings, which is operated by the ruling Al Thani family. The company acquired a 97 percent stake in the building for $535 million in 2015. At the time of the purchase, the company was rumored to be eyeing a full demolition of the building to erect a 900,000-square-foot tower. The property continues to operate as a hotel.

The lender of the new loan is Mack Real Estate, property records show. The company assumed a $275 million mortgage provided by Goldman Sachs subsidiary Broad Street Credit Holdings from August 2017. The new financing also includes a $15 million gap mortgage. HFF‘s Christopher Peck, Danny Kaufman and Jeff Bucaro brokered the deal.

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Manhattan at Times Square, which has addresses 790 Seventh Avenue and 1656 Broadway, is a 22-story, 462,000-square foot tower that occupies a full city block between West 51st and West 52nd streets. It was previously owned by a joint venture between Rockpoint Group, Highgate Hotel and Goldman Sachs.

Mack Real Estate has been actively lending across the five boroughs. Just over the past month, it was involved in $170.5 million in loan transactions for David Marx’s planned Marriott hotel at 450 11th Avenue and Ray Yadidi’s acquisition of the DKNY headquarters at 240 West 40th Street. It also provided financing for Cape Advisors‘ luxury residential project in Astoria and the Chetrit Group‘s Tillary hotel in Brooklyn.

Al Rayyan and Mack Real Estate did not immediately respond to requests for comment.

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