CapitaLand signs $68M refi loan with OCBC Bank for hotel in Garment District

CapitaLand through the entity Sm Ascott LLC as borrower signed a refi loan with lender OCBC Bank through the entity Oversea-Chinese Banking Corporation Limited valued at $68 million for the hotel building (H2) at 311 West 39th Street in Garment District, Manhattan.
The deal closed on September 18, 2025 and was recorded on September 26, 2025. The prior lender was OCBC Bank which held debt that had an original loan amount of $98 million.The property has 177,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $384 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on September 29, 2016, for $128.2 million. The signatory for CapitaLand was Eaton Zhou . The signatory for OCBC Bank was Grace Sun .

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Robert Gormley, head officer. The business entity is Trs Llc. The 177,000-square-foot property generated revenue of $32.6 million or $184 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Garment District has 177,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 98 feet deep with a total lot size of 7,406 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $61.8 million. Oversea-Chinese Banking Corporation on October 16, 2020 bought a loan with an original principal of 98000000.0 from OCBC Bank signed by Eaton Zhou, secured by 311 West 39th Street, when owned by CapitaLand.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,650 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 5, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 8th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Garment District is the 6th most active neighborhood among other neighborhoods. It had 11.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 16 of the 31 commercial properties representing 1,159,669 square feet of the 1,572,885 square feet. The largest owner is Mack Real Estate Group, followed by Gehr Group and then Mcsam Hotel Group.
On the tax block, there was one new building construction project filed totaling 19,255 square feet. It is a 25-unit, 19,255 square-foot residential (R-2) building submitted by Man Hei Li with plans filed May 15, 2019 and permitted May 25, 2022.

The majority, or 71 percent of the 1.6 million square feet of built space are hotel buildings, with office buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Capitaland owned at least three commercial properties in New York City with 302,836 square feet and a city-determined market value of $101.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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