Courtyard by Marriott Hudson Yards Secures $199M Refi Deal
Real Estate In-Depth | August 2019
NEW YORK—An affiliate of Mack Real Estate Credit Strategies reported on Aug. 16 it provided a $199-million loan to refinance the Courtyard by Marriott Hudson Yards hotel, recently built by companies affiliated with hotelier David Marx.
The loan proceeds will be used to take out a construction loan and other previous financing ahead of the hotel’s planned opening scheduled for this month.
The Courtyard by Marriott Hudson Yards is a newly constructed 399-key hotel in the growing Hudson Yards neighborhood of Manhattan. The property stands 29 stories high and offers a restaurant, meeting space, a fitness center, and ground floor retail space, which will be occupied by a Chase bank branch.
The hotel is well-positioned to benefit from the wave of development in Hudson Yards. Related Companies is currently developing approximately 8.5 million square feet office space, 1 million square feet of retail and 2 million square feet of residential at Hudson Yards.
Additional development around Hudson Yards includes Brookfield’s Manhattan West (7 million square feet) and Tishman Speyer’s The Spiral building (2.8 million square feet). Nearby is the Javits Center, which recently underwent a $463-million renovation and expansion and added 100,000 square feet, and plans are underway to expand the facility by a further 1 million square feet.
In addition to these location-based advantages, the Courtyard by Marriott Hudson Yards will have a direct connection to the 34th Street-Hudson Yards subway station, the primary public transportation hub for the area.
Mack Real Estate Credit Strategies, L.P., the financing arm of the Mack Real Estate Group of New York City, was established to be a one-stop shop for borrowers with transitional assets, in particular to provide capital for deals that traditional banks are less likely to finance due to increased regulation, or complexity and execution risk that are better suited to an integrated real estate firm. MRECS focuses on properties in need of flexible capital and sponsors seeking an experienced, sophisticated real estate lending partner.