Extell Development signs $325M refi loan with Guggenheim for Hard Rock Hotel

Extell Development has refinanced the construction of the planned Hard Rock Hotel at 159 West 48th Street with a $325 million loan from Guggenheim Investments, an affiliate of Guggenheim Partners.

The deal closed on March 1, 2022 and was recorded on March 8, 2022. It replaces a $225 million construction loan from Bank of America.

Marc Kwestel was the signatory for Extell Development through the entity Exg 159w48 LLC. Jamis E. Pass signed for Guggenheim Investments. Adrianna Marcovici signed for Bank of America on the loan transfer.

The property has 277,509 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,171 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 property

The 151-161 West 48th Street parcel has frontage of 135 feet and is 105 feet deep with a total lot size of 13,153 square feet. The lot is irregular. The zoning is C6-7T which allows for up to 14 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $43.2 million.The most recent loan totaled $225 million and was provided by Bank of America on January 16, 2020.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $45,625 in ECB penalties and $48,255 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 446-unit, 216,722-square-foot R-1 building. The project was developed by David Rothstein with plans filed July 14, 2017 and permitted October 24, 2019.

The neighborhood

In Midtown West, the majority, or 69 percent of the 82.2 million square feet of built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Midtown West is the 3rd most active neighborhood among other neighborhoods. It had 8.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 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 four of the 20 commercial properties representing 2,966,636 square feet of the 3,787,916 square feet. The largest owner is Rockefeller Group, followed by Extell Development and then Comjem Associates. There is one active new building construction project totaling 216,722 square feet. It is a 446-unit, 216,722-square-foot R-1 building developed by David Rothstein with plans filed July 14, 2017 and permitted October 24, 2019.

the majority, or 87 percent of the 3.1 million square feet of built space are office buildings, with hotel buildings next occupying 11 percent of the space.

Surrounding

Within a 400-foot radius of 151-161 West 48th Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, two were in new building development. There were one new building permit application and one new building permit. The most recent of these two items was a filing on April 28, 2021 for a 112,862-square-foot R-1 building with 401 residential units at 711 7th Avenue.
Of those nine items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on December 1, 2021 for the $656,085 renovation of 5,272,364-square-foot E building with zero residential units at 1221 Avenue Of Americas.
Of those nine items, three were sales above $5 million totaling $227.1 million. The most recent of the three was Tribeach Holdings which bought the 60,619-square-foot, two-unit hotel (HB) on 157 West 47th Street and three other properties for $53.7 million from Shubert Organization on August 13, 2021.
Of those nine items, three were loans above $5 million totaling $247.2 million. The most recent of the three was Comjem Associates which borrowed $30 million from Signature Bank secured by the 47,125-square-foot, two-unit office building (O6) on 721 7th Avenue on March 10, 2021.

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