Highgate, BGO sign $116.6M refi with Sixth Street for two properties in NoMad

Highgate Hotels and BGO through the entity Tga II, LLC as borrower signed a refi loan with lender Sixth Street Partners through the entity Beacon Finance 4, LLC valued at $116.6 million for two properties including the Royalton Park Avenue hotel building (H1) at 420 Park Avenue South in NoMad, Manhattan and 18-unit residential elevator building (D0) at 41 East 28th Street in NoMad, Manhattan.
The deal closed on February 4, 2026 and was recorded on February 17, 2026. The prior lender was Series 2012-GC8 serviced by LNR Partners which held debt that had an original loan amount of $140 million.The two properties have 240,825 square feet of built space and 14,595 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $484 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 signatory for Highgate Hotels and BGO was Matthew Cervino . The signatory for Sixth Street Partners was Heather Lockhart .

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 420 Park Avenue South.

Prior sales, articles and revenue

The owners according to the Department of Housing Preservation and Development includes Sandy Peng, head officer and Tgaii Llc, lessee. The business entities are Tga Ii Llc and Tga Ii Llc. The two properties with a total of 240,825 square feet of built space generated revenue of $30.1 million per year or $125 per square foot.

The property

The hotel building in NoMad has 240,825 square feet of built space and 14,595 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 103 feet and is 141 feet deep with a total lot size of 14,355 square feet. The lot is irregular. The zoning is C6-4A 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 $64 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $4,175 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. On these lots, there is one active major alteration construction project, M01347075, for a 253-unit, 206,409 square-foot J-1 building. The project was submitted by Joseph Monaco with plans filed February 12, 2026 and it has not been permitted yet.

The neighborhood

In NoMad, The majority, or 66 percent of the 13 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has 1.6 times the average sales volume among other neighborhoods with $520.2 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, NoMad has 2 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 24 percent of the neighborhood’s built space.

The block

On the tax block of 420 Park Avenue South, PincusCo has identified the owners of seven of the 16 commercial properties representing 1,152,802 square feet of the 1,764,078 square feet. The largest owner is Global Holdings Management Group, followed by Feil Organization and then Nuverse Advisors.
On the tax block, there was one new building construction project filed totaling 169,210 square feet. It is a 123-unit, 169,210 square-foot residential (R-2) building submitted by Rockefeller Group and filed by John Pierce with plans filed January 30, 2018 and permitted June 6, 2018.

The majority, or 58 percent of the 1.8 million square feet of built space are office buildings, with elevator buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Highgate Hotels owned at least one commercial property with nine residential units in New York City with 450,000 square feet and a city-determined market value of $118.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

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