Strip club king refis major Manhattan and Queens portfolio

Bluestone Capital and Mack Real Estate Credit Strategies originated the $148M loan
September 24, 2018 08:40AM

Penthouse Executive Club at 603 West 45th Street (Credit: Google Maps and Facebook)

Investor Robert Gans, perhaps best known for owning strip clubs such as Scores New York and Penthouse Executive Club, refinanced a portfolio of Manhattan and Queens redevelopment sites to the tune of $148 million.

Bluestone Capital, an affiliate of Eli Tabak and Marc Mendelsohn’s Bluestone Capital, led the origination of the three-year bridge loan, Commercial Observer reported. Mack Real Estate Credit Strategies took a senior participation of $130 million, according to the publication.

The portfolio spans more than 1 million square feet. And though the addresses were not identified, two of the Manhattan sites are in Hell’s Kitchen, one is in Soho and the other is in West Chelsea.

The Queens properties are in Astoria and Jamaica.

Shaya Ackerman and Shaya Sonnenschein at Meridian Capital Group negotiated the financing, which carries an interest rate of 650 basis points over LIBOR.

Bluestone Capital has increasingly been issuing bridge loans. In January, it originated a $109 million loan for Jeffrey Wu’s building at 41-60 Main street. Mack last week loaned Related Companies $65 million for its acquisition of a development site in Hudson Yards at 517 West 35th Street.

Elsewhere, Gans and partner Henry Wollman of Quadriad Realty Partners are suing Larry Silverstein over a development project in Astoria. [CO] – Rich Bockmann