The Real Deal New York

Blackstone lends Highgate nearly $250M for Park Central Hotel buy

Borrower picked up property from Pebblebook Hotel Trust last month for $366M
By Rich Bockmann | December 12, 2018 02:15PM

From left: Highgate’s Mahmood Khimji, Mehdi Khimji, 870 7th Avenue, and Blackstone mortgage CEO Steve Plavin (Credit: Kelly Taub/BFA.com, Booking, and Blackstone)

The Blackstone Group’s mortgage arm provided Highgate with nearly $250 million to finance its acquisition of the Park Central Hotel.

Blackstone Mortgage Trust issued three loans totaling $247.57 million, property records filed with the city Wednesday show.

Records list the purchase price at $366.17 million.

Representatives for Highgate and Blackstone couldn’t be immediately reached for comment.

Pebblebrook Hotel Trust sold the 934-key Park Central Hotel at 870 Seventh Avenue late last month as part of a portfolio of properties it unloaded following its acquisition of LaSalle Hotel Properties, as The Real Deal reported.

Highgate brought in Cerberus Capital as an equity partner on the deal, according to Real Estate Alert.