Sam Chang lands $185M Deutsche loan for Midtown hotel project

Bank of the Ozarks assigns construction loan to German institution

The previous site at 338 West 36th Street, Sam Chang, and Matt Borstein
The previous site at 338 West 36th Street, Sam Chang, and Matt Borstein

Sam Chang refinanced his Marriott hotel development at 338 West 36th Street with a $185 million loan package from Deutsche Bank, property records show.

As part of the deal, Bank of the Ozarks assigned an existing $99 million construction loan on the Garment District project, which it had issued in July 2016, to the German lender. Deutsche Bank is throwing in $86 million in gap mortgages.

Chang’s McSam Hotel Group bought the site, formerly the Postgraduate Center for Mental Health, for $50.8 million in 2014. The developer is building a 28-story tower that will include two Marriott-branded hotels.

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Deutsche Bank declined to comment and Chang did not respond to a request for comment.

Chang told the Commercial Observer in 2016 that he expects construction to finish by April 2018.

The developer and Deutsche Bank are no strangers: In 2016, Chang landed a $215 million construction loan from the Frankfurt-based firm for his Hilton hotel development in Hell’s Kitchen.

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