The Real Deal New York

Ace Hotel on Bowery lands $80M refinancing

Bank Hapoalim provided the debt
By Eddie Small | March 05, 2019 08:30AM

From left: A rendering of 225 Bowery, Omnia Group President David Paz, and Northwind managing partner Ran Eliasaf

A new hotel just landed a new refinancing package.

Developer David Paz’s Omnia Group and the Northwind Group secured an $80 million mortgage for the new Ace Hotel on the Bowery, according to sources familiar with the deal.

Mission Capital Advisors’ Jonathan More

Bank Hapoalim provided the five-year balance-sheet loan for the 14-story, 200-key hotel, replacing previous debt from Bank of the Ozarks, property records show. Mission Capital Advisors’ Jonathan More, Steve Buchwald, Ari Hirt, Alex Draganiuk, Jamie Matheny and Beau Williams arranged the financing.

“We see that the Bowery is really becoming a prominent nightlife destination,” Northwind managing partner Ran Eliasaf told The Real Deal. “It’s really becoming the bridge between the Lower East Side and Nolita.”

The rooftop bar and ground-floor restaurant at the 200-key hotel are set to open next month.

Omnia and Northwind, the minority partner, bought the property at 225 Bowery in 2014 from the Salvation Army for $30.5 million, and embarked on a massive renovation project. The opening marks the introduction of Ace Hotel’s “Sister City” brand, and amenities at the hotel include a ground floor café and a new construction rooftop.

Elsewhere, Northwind and the Gural family recently inked a 24-year, 527,000-square-foot lease with NYC Health + Hospitals for 100 Pearl Street in the Financial District, which they purchased for $300 million.

Omnia and Northwind previously worked together on a condo building at 351 West 54th Street in Hell’s Kitchen, which they sold to Bentley Zhao in 2017 for $34 million.