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Moin Development gets $127M refi for Mondrian Park Avenue

The 190-key NoMad hotel, formerly called SLS Park Avenue, opened in October

Mondrian Park Avenue and David Moinian (Credit: Mondrian Park Avenue and Getty Images)
Mondrian Park Avenue and David Moinian (Credit: Mondrian Park Avenue and Getty Images)

David Moinian’s Moin Development pulled off a $126.7 million refinancing of NoMad’s New Luxury Hotel Mondrian Park Avenue from JPMorgan Chase, The Real Deal has learned.

The 20-story, 190-key hotel at 444 Park Avenue South opened in October after a conversion and expansion of the 15-story former office building on the site.

The floating-rate loan will refinance the construction loan for the Philippe Starck-designed property, according to HFF, which brokered the deal.

Moin licensed the Mondrian brand from partner SBE Entertainment Group, though the hospitality firm’s head Sam Nazarian’s shares were bought out just prior to the opening.

HFF’s Evan Pariser and K.C. Patel represented Moin in the financing.

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The hotel was long intended to be the first SLS property in the city, called SLS Park Avenue. But in July, the developers opted to change the name to Mondrian Park Avenue, in part because SBE had acquired the company Morgans Hotel Group for $805 million in late 2016.

“The Mondrian fit better in that NoMad area, with its design and finishes,” Nazarian told Travel Weekly earlier this month. “Mondrian also already had a connection in SoHo [via the former Mondrian SoHo, which is now the NoMo SoHo]. Also, SLS has really evolved into a much more luxury product, and we wanted to save SLS for a location that could take advantage of having a residential component.”

Representatives for JPMorgan and SBE did not immediately respond for comment.

Moin bought the office property on the site for $45 million in 2011 and partnered with Nazarian’s SBE for a $150 million conversion.

The existing debt on the property is a $109 million loan that Fortress Investment Group provided in 2015, property records show.

Elsewhere in the hotel market, Benefit Street Partners recently provided a $68 million refinancing of Toby Moskovits’ Williamsburg Hotel,and Credit Suisse and Natixis put up $312 million for the Tishman Realty-owned Westin New York at Times Square.

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