Alexico Nabs $345M Refinancing Package at Mark Hotel

Another year, another refinancing of Alexico Group’s Mark Hotel on the Upper East Side.

Deutsche Bank led a $345 million balance sheet financing package for the five-star property at 25 East 77th Street, the Commercial Observer reported. J.P. Morgan Chase and BDT & MSD Partners also participated in the financing.

A Walker & Dunlop team including Sean Reimer, Aaron Appel and Keith Kurland negotiated the debt. None of the lenders or parties involved commented on the deal to the publication.

In 2024, Izak Senbahar’s Alexico refinanced the luxury property with a $335 million loan. A bulk of the debt was made up by a $300 million commercial mortgage-backed securities loan provided by Goldman Sachs; the remainder was mezzanine financing held outside of the CMBS trust.

Alexico previously refinanced the 153-key property in 2022 through the CMBS market. That refinancing helped Senbahar avoid catastrophe after Ohana Real Estate Investors moved to foreclose on the hotel early in the pandemic after Alexico allegedly missed multiple payments on a mezzanine loan.

Alexico also refinanced the hotel with $230 million from JPMorgan Chase in 2017 and $265 million overall, replacing a $200 million loan from TPG Real Estate Finance.

The five-star hotel includes roughly 150 rooms, the most expensive of which can go for five figures a night. The hotel, steps away from the Metropolitan Museum of Art, also features The Mark Restaurant by Jean-Georges and often houses Met Gala attendees.

Last year, an anonymous party offered to buy the hotel for $1 billion, but it’s unclear if Senbahar’s firm seriously considered the deal, which would have reset the market for the Big Apple hospitality sector.

Just this week, French media and entertainment company Generation Essentials Group purchased the 151-key Tribeca Hilton Garden Inn at 39 Sixth Avenue for $69 million. The seller of the hotel was Philadelphia-based Hersha Hospitality and KSL Capital Partners.

The buyer renamed the property AMTD Idea Tribeca Hotel and plans to convert it into a “world’s first Art Newspaper House,” though it’s unclear what that means.

— Holden Walter-Warner