Sam Chang scores $38M for latest Midtown hotel project

The loan from Madison Realty Capital is for project at 525 Eighth Avenue

New York /
Jul.July 24, 2018 08:00 AM

Sam Chang and the site at 525 Eighth Avenue (Credit: Google Maps)

Madison Realty Capital has loaned Sam Chang’s McSam Hotel Group $38 million for his Midtown project at 525 Eighth Avenue.

Chang is building a 28-story building on the site that will span 106,827 square feet and include a 320-key Radisson hotel. He will use the loan to finalize construction on the building, according to the lender. Workers have already completed 20 stories of the building, and it should be finished within the year.

Chang bought the site’s ground lease in 2016 for $27.1 million.

Madison also recently loaned Chang $16.5 million for his 142-key hotel project at 38-04 11th Street in Long Island City. Chang is planning another Long Island City hotel at 38-39 9th Street with 324 rooms.

During the first quarter of 2018, average daily room rates in Manhattan grew for the first time since 2014, according to a recent PricewaterhouseCoopers report. That’s partly due to a shrinking pipeline of new rooms.


Related Articles

arrow_forward_ios
Slate founding partners Blair Welch and Brady Welch (Slate, iStock)
RE-focused investment firm Slate raises $600M for private-credit fund
RE-focused investment firm Slate raises $600M for private-credit fund
Scott Rechler, CEO of RXR Realty and The Real Deal's Amir Korangy
Coffee Talk: Scott Rechler on beating the pandemic
Coffee Talk: Scott Rechler on beating the pandemic
L&L Holding’s David Levinson and Columbia Property Trust's Nelson Mills with a rendering of 261 11th Avenue (L&L, Columbia Property Trust, Terminal Warehouse)
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
Pandemic lockdowns for all three cities started in the last full week of March 2020, but office use had already plunged the week before as companies proactively sent workers home (iStock)
Manhattan lags Chicago, LA in returning to the office
Manhattan lags Chicago, LA in returning to the office
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Lexington Hotel at 511 Lexington Avenue (Google Maps)
NYC hotels getting busier, but still struggling
NYC hotels getting busier, but still struggling
Illustration of Sam Zell of Equity Commonwealth (right) and Barry Sternlicht of Starwood (Illustration by Kevin Rebong for The Real Deal)
Monmouth Real Estate: We’ll sell to Zell, not Sternlicht
Monmouth Real Estate: We’ll sell to Zell, not Sternlicht
Instacart CEO Apoorva Mehta (Getty)
Instacart to build fulfillment centers near supermarkets
Instacart to build fulfillment centers near supermarkets
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...