Capstone and Highgate score $130M loan to buy W hotel

Partners close on $190M purchase of 541 Lexington Avenue

Mahmood Khimji, Joshua Zamir and 541 Lexington Avenue
Mahmood Khimji, Joshua Zamir and 541 Lexington Avenue

Capstone Equities and Highgate pulled off roughly $130 million in financing to close on their purchase of the W Hotel New York on Lexington Avenue, sources told The Real Deal.

LoanCore Capital, a Connecticut-based asset manager, provided 70 percent of leverage on the $190 million purchase of 541 Lexington Avenue in Midtown East, according to sources familiar with the deal.

The 697-key property will now be operated as the Maxwell instead of the W.

Host Hotels & Resorts, a publicly traded hotel investment firm, entered contract in February to sell to Capstone and a then-unidentified equity partner. HEI Hotels was previously rumored to have equity in the deal.

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Eastdil Secured brokered the deal and the loan.

Representatives for Capstone, Highgate and Eastdil declined to comment. LoanCore could not be reached.

Capstone — led by Joshua Zamir, Daniel Ghadamian and Justin Adelipour — partnered with the Khimji brothers’ Highgate last year to buy the Nyma hotel in Koreatown for $52 million.

Highgate was Manhattan’s most active hotel buyer in 2016 and 2017, having bought the 600-plus-room Affinia Manhattan on Seventh Avenue, the Royalton New York on West 44th Street, the Gansevoort Park Avenue, and the Nyma.