The calendar read 7/11 two days ago, but the developers of 711 Seventh Avenue waited a couple of extra days to pop the champagne.
Atlas Hospitality and Flintlock Construction landed a $120 million construction loan from Beach Point Capital Management for the 32-story hotel project in Times Square, the Commercial Observer reported. The three-year floating-rate loan comes with two one-year extension options.
The joint venture is planning a 401-key, Voco-branded hotel at the former retail site on the corner of 48th Street. IHG Hotels & Resorts, which owns the Voco brand, will operate the property. It will be the first ground-up Voco hotel in New York City.
The lender wasn’t a major surprise. Last year, it was reported that Beach Point Capital was weighing financing the project, though it had yet to make a firm decision at that point.
It’s been two years since Atlas filed plans for the 140,000-square-foot, 343-foot tall project. Prolific hotel architect Gene Kaufman has been on board since then, despite the lack of a brand for the project at the start.
The project hit a snafu last year when Flintlock filed a lawsuit against several parties, including SL Green, Sam Chang’s McSam Hotel Group and Natixis over a lack of access needed from the neighbors to demolish the existing property on the hotel site. Flintlock said the neighbors were doing “irreparable harm” to the project.
Motions filed by each side were withdrawn earlier this year, allowing the developers to finally demolish the site, concluding the razing in May. Construction is expected to be completed during the third quarter of 2025.
Atlas is also developing hotels at 120 Water Street in the Financial District and 305 West 48th Street, which is also in Times Square.
Beach Point Capital, based in Santa Monica, also made waves in another borough of the city. It teamed with Invictus Real Estate Partners and Maxim Capital Group on a $62 million construction loan for a mixed-use project at 1730 Bedford Avenue in Brooklyn, which a Lidl supermarket will anchor.
— Holden Walter-Warner, Jay Young contributed research to the reporting
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