David Marx lands $125M loan from Moinian for Hudson Yards hotel

Deal ups previous Monian loan from $90M

TRD New York /
Jul.July 31, 2018 12:00 PM

From left: Renderings of 461 West 34th Street, Joseph Moinian, and David Marx (Credit: CityRealty, Moinian, and Marx Development Corp.)

David Marx’s Marx Development Group has refinanced one of its Hudson Yards hotels with a $125 million loan from the Moinian Group, according to documents filed with the Tel Aviv Stock Exchange. The loan replaces a previous $90 million loan from Moinian, which expires today.

The 29-story Courtyard by Marriott, located at the corner of West 34th Street and 10th Avenue, is scheduled to open in the winter of 2018, according to the report.

Marx had worked with another lender to refinance the loan but Moinian exercised its option to provide the funds instead. The three-year loan will amount to $125 million or 50 percent of the asset value after stabilization, whichever of the two is lower.

The interest rate will be 1.85 percent or 4.15 percent over monthly Libor, whichever of the two is higher.

Marx has the option to extend the loan up to $165 million or 75 percent of the asset value after stabilization.

The 300-key hotel at 461 West 34th Street includes ground-floor retail, and the company has signed a 10-year lease with JP Morgan Chase beginning in December 2018. It was originally scheduled to open in August, and is now 90 percent built, according to the report.

Marx bought the land for $16 million over 10 years ago, and its construction was delayed by the recession, among other obstacles. He has financed it with a combination of EB-5 money, Israeli bonds and the loan from Moinian, which was one of the developer’s first forays into lending.

Marx is building a second Hudson Yards hotel at 450 11th Avenue, and recently closed on a $88 million loan for the 42-story project.

Marx Development and Moinian Group were not immediately available for comment.

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

The Observation Deck at Hudson Yards (Credit: Adam Pogoff)

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere

Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)

Facebook close to finalizing Hudson Yards office deal: report

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

The total market value of all properties in New York City was at about $1.4 trillion (Credit: iStock)

Market value of NYC real estate went up at slowest rate in years

250th Issue

The Real Deal celebrates 250 issues

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

Related Chairman Stephen Ross (Credit: Getty Images, Wikipedia)

Related drops 700-foot-long “wall” from Hudson Yards plan