Aby Rosen’s RFR lands $140M loan for Times Square hotel

The lender is Germany-based Aareal

Aby Rosen and the Paramount Hotel (Credit: RFR)
Aby Rosen and the Paramount Hotel (Credit: RFR)

Aby Rosen’s RFR Realty secured a $140 million loan for the Paramount Hotel in Times Square.

The lender for the new mortgage is Aareal Capital Corporation, a subsidiary of German lender Aaereal Bank AG, according to property records filed with the city Tuesday. Aareal assumed the $100 million unpaid balance on the property from Citibank and provided a $40 million gap mortgage.

RFR bought the property, at 235 West 46th Street, for $275 million in 2011. After the acquisition, the firm spent $50 million renovating the 18-story, 597-key hotel. The overhaul touched the Diamond Horseshoe, a former Broadway theatre that was converted into a nightclub. Rosen spent $20 million renovating the subterranean event space for the two-year run of theater production Queen of the Night.

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Rosen recently expanded his hospitality portfolio by acquiring the former Jehovah’s Witnesses’ residential hotel at 90 Sands Street.  The property, which changed hands in a $135 million transaction, was part of a six-building portfolio that RFR, Kushner and LIVWRK bought in 2013.

A spokesperson for RFR did not immediately return a request for comment.