KSL Capital Partners provide $150M refi for Hyatt hotel in Garment District

The entity NY 39th Street LLC, affiliated with Magna Hospitality Group, as borrower signed a refi loan with lender KSL Capital Partners through the entity Ksl Cof Iv Cb Mortgage, LLC valued at $150 million for the Hyatt hotel building (H1) at 350 West 39th Street in Garment District, Manhattan.
The deal closed on June 11, 2025 and was recorded on June 26, 2025. The prior lender was Blackstone Group which held debt that had an original loan amount of $115 million.The property has 179,130 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $837 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 17, 2021, for $166.5 million. The signatory for the hotel owner was Jennifer Adams Shepler . The signatory for KSL Capital Partners was Nolen Taylor .

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Andrew Lichtenbaum, head officer and Luis Nelson, agent. The business entity is Ny 39th Street Operating Tenant Llc. The 179,130-square-foot property generated revenue of $48.5 million or $271 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Garment District has 179,130 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 98 feet deep with a total lot size of 12,344 square feet. The city-designated market value for the property in 2022 is $68.1 million. The most recent loan totaled $115 million and was provided by Blackstone Group on September 17, 2021.

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 $2,035 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 19, 2019. On the lot, there is one active new building construction project, 121193608, for a 520-unit, 147,863 square-foot R-1 building. The project was submitted by McSam Hotel Group and filed by Sam Chang with plans filed July 24, 2015 and permitted February 6, 2017.

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 9th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 24 commercial properties representing 646,174 square feet of the 1,541,804 square feet. The largest owner is Quadrum Global, followed by Magna Hospitality Group and then Ivy Realty.
On the tax block, there was one new building construction project filed totaling 147,863 square feet. It is a 520-unit, 147,863 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Sam Chang with plans filed July 24, 2015 and permitted February 6, 2017.

The majority, or 43 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 35 percent of the space.

The borrower

The PincusCo database currently indicates that Magna Hospitality Group owned at least six commercial properties in New York City with 932,143 square feet and a city-determined market value of $338.4 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Wells Fargo, PIMCO, and Blackstone Group respectively. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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