Davidson Kempner Capital signs $150M refi for Westin in Grand Central, down from $196.8M

Davidson Kempner Capital Management through the entity Dk Wgc Fee Owner LLC as borrower signed a loan with lender Apollo Global Management through the entity Athene Annuity And Life Company valued at $150 million for the hotel building (H1) at 214 East 42nd Street in Grand Central, Manhattan.
The deal closed on August 9, 2023 and was recorded on August 17, 2023. The property has 517,158 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $290 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 January 9, 2019, for $277.7 million. The prior debt of $196.8 million was originated by Goldman Sachs, which on August 9 assigned the debt to Blackstone Group, which immediately assigned it to Apollo Global Management.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jeffery Clark, head officer and Colleen Senters, site manager. The business entity is Hhr 42 Associates Lp.

The property

The parcel has frontage of 150 feet and is 197 feet deep with a total lot size of 29,624 square feet. The zoning is C5-3 which allows for up to 15 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 $138.2 million.

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 three DOB violations and $5,705 in OATH penalties in the last year.

The neighborhood

In Murray Hill, The majority, or 54 percent of the 11 million square feet of commercial built space are elevator buildings, with office buildings next occupying 22 percent of the space. In sales, Murray Hill has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 13th highest in Manhattan. For development, Murray Hill has had very little major development activity relative to other neighborhoods.It had 284,258 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 387,855 square feet of the 905,013 square feet. The identified owner is Durst Organization.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 905,013 square feet of built space are hotel buildings, with office buildings next occupying 42 percent of the space.

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