Cheers: Soho Properties secures $317M refi on Times Square Margaritaville

Sharif El-Gamal's Midtown resort, which opened in June, lands largest NYC hotel refi so far this year

New York /
Sep.September 20, 2021 06:28 PM
Soho Properties chairman and CEO Sharif El-Gamal (Getty, Margaritaville)

Soho Properties chairman and CEO Sharif El-Gamal (Getty, Margaritaville)

Sharif El-Gamal’s Soho Properties has closed on a $317 million refinancing of its recently completed Margaritaville Resort Times Square.

Leading the financing was senior lender Bedrock Capital Associates LLC, the real estate finance affiliate of One William Street Capital Management, while mezzanine funding came from South Korea’s Hana Financial Investment, Soho Properties said in a joint statement Monday with co-developers Chip and Andrew Weiss.

The refinancing was the largest for a New York City hotel property so far this year, according to the developers.

The 170,000-square-foot, 234-key hotel opened in June. The 32-story property cost $400 million to develop. Soho Properties acquired the property, the former site of the Parsons School of Design, seven years ago.

The hotel opened its doors at a time of turmoil for the city’s lodging industry. Data from Trepp last November showed that more than 80 percent of New York hotels that are backing CMBS loans, equivalent to $3.1 billion, were under strain due to the pandemic.

“Hotel and retail assets are not easy to finance today,” Soho Properties CEO Sharif El-Gamal said in a statement. “We’ve built something incredible.”

The project has a long history. Soho Properties and partner MHP Properties purchased the site in 2014 with a $63 million loan from Colony Capital, planning a 29-story mixed-use building anchored by a Dream Hotel.

After the joint venture defaulted on the loan when it matured, investor Eli Cohen bought the distressed note, in May 2017, and had an option to foreclose on the site. El-Gamal said a $270 million construction loan in 2019 from Related, Angelo Gordon and mezzanine lender Hana retired Cohen’s $85 million debt in the project.

It’s not the only Sharif El-Gamal project with a long history. Soho Properties’ other well-known Manhattan development is the 50-unit condo tower at 45 Park Place, which occupies a piece of the site where the developer had once hoped to build an Islamic community center and mosque.





    Related Articles

    arrow_forward_ios
    Leonard Stern with Wyndham Garden Hotel Newark Airport (Getty, Hotels Combined)
    Hartz buys Newark Airport hotel for $34M, plans demolition
    Hartz buys Newark Airport hotel for $34M, plans demolition
    The Chetrit Group's Joseph Chetrit and Park West Village on the Upper West Side (Getty Images, Google Maps)
    Chetrit, Stellar land $365M refi for UWS luxury apartment complex
    Chetrit, Stellar land $365M refi for UWS luxury apartment complex
    42 Greene Street with Zar Property NY's David Zar (top) and Dario Zar  (Commercial Cafe, Getty)
    Zar family secures $100M refi on Soho office, retail properties
    Zar family secures $100M refi on Soho office, retail properties
    CBRE's Chuck Leitner with the Brooklyn Logistics Center (CBRE, MarchAssociates Construction)
    CBRE arm scores $106M refi for Amazon-operated warehouses
    CBRE arm scores $106M refi for Amazon-operated warehouses
    Durst Organization's Douglas Durst, Jamestown's Michael Phillips and One Times Square (Durst Organization, Jamestown, Getty, Bernt Rostad from Oslo, Norway edited by Yarl/CC BY 2.0/via Wikimedia Commons)
    Durst sues Jamestown over Times Square scaffolding
    Durst sues Jamestown over Times Square scaffolding
    Joe Chetrit and the Hotel Carter Times Square at 250 West 43rd Street (Getty, Google Maps)
    Chetrit gets $185M loan to renovate NYC’s formerly filthiest hotel
    Chetrit gets $185M loan to renovate NYC’s formerly filthiest hotel
    John Catsimatidis and 3514 Surf Avenue (Google Maps)
    Catsimatidis gets $153M refi on Coney Island apartment towers
    Catsimatidis gets $153M refi on Coney Island apartment towers
    Public Hotel at 215 Chrystie Street, Steve Witkoff and Ian Schrager (Getty, Google Maps, Witkoff)
    Schrager, Witkoff default on Public Hotel mortgage
    Schrager, Witkoff default on Public Hotel mortgage
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...