Sam Chang scores $38M for latest Midtown hotel project

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

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

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

From left: Raphael Toledano and Madison Realty Capital managing principals Adam Tantleff, Josh Zegen and Brian Shatz (Illustration by Kevin Rebong for The Real Deal)

Raphael Toledano’s “ghostly” East Village portfolio

250th Issue

The Real Deal celebrates 250 issues

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline