The Real Deal New York

Sam Chang lands $160M rei for Hyatt Place hotel in Garment

Financing replaces $95M loan from Bank of the Ozarks in 2017
By Kevin Sun | March 11, 2019 06:30PM

Sam Chang and a rendering of the Hyatt Place hotel at 350 West 39th Street (Credit: Gene Kaufman)

Sam Chang’s McSam Group has landed a $160 million refinancing for an under-construction Hyatt Place hotel in the Garment District.

The new debt from Deutsche Bank at 350 West 39th Street replaces a $95 million debt package from Bank OZK – then known as Bank of the Ozarks – from 2017, and consists of a $32 million project loan, a $67 million building loan, and a $61 million senior loan, according to city records recorded on Monday.

The initial financing package McSam secured in 2017 also included $25 million in preferred equity from Square Mile Capital Management. OZK and Square Mile have co-financed a number of other Sam Chang projects, including a 526-key Chelsea hotel last year.

Representatives for Deutsche Bank could not be reached for comment.

McSam partnered with London-based private equity firm Quadrum Global in 2014 to acquire the through-lot between West 38th and 39th Streets for $112 million. The partners then subdivided the lot, formerly home to an advertising agency, with Quadrum planning a 25-story, 490-key hotel facing 38th Street, and Chang planning a 25-story, 520-key hotel on 39th Street.

And just next door, at 338 West 39th Street, Chang is building yet another 25-story, 175-key hotel in partnership with Barone Management.