The Real Deal New York

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

Deal ups previous Monian loan from $90M
By Chava Gourarie | July 31, 2018 12:00PM

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.