KSL Capital ups debt by $13M on Tribeca hotel to $58.6M

KSL Capital Partners through the entity York Street Lessee DE, LLC as borrower signed a refi loan with lender Wells Fargo and Citibank valued at $58.6 million for the Hilton Garden Inn Tribeca NY hotel building (H3) at 39 Avenue of the Americas in Tribeca, Manhattan.
The deal closed on December 6, 2024 and was recorded on December 20, 2024. The existing lender are Wells Fargo and Citibank which held debt that had an original loan amount of $45.5 million.
The property has 65,283 square feet of built space and 6,175 square feet of additional air rights for a total buildable of 71,487 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $897 and the price per buildable square foot is $819 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 November 28, 2023, for $317.8 million. The signatory for KSL Capital Partners was Ashish Parikh, the CFO at HHM Hotels. The signatories for Wells Fargo and Citibank were Jeffrey L. Cirillo and Jonathan Misher. KSL Capital Partners took Hersha Hospitality, now known as HHM Hotels, private in 2023.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ashish Parikh, head officer and Jay Shah, officer. The business entity is York Street Llc.

The property

The hotel building in Tribeca has 65,283 square feet of built space and 6,175 square feet of additional air rights for a total buildable of 71,487 square feet according to a PincusCo analysis of city data. The parcel has frontage of 109 feet and is 142 feet deep with a total lot size of 11,875 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $28 million. The most recent loan totaled $45.5 million and was provided by Wells Fargo|Citibank on November 28, 2023.

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 one DOB violation and $750 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 17, 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 Tribeca, The bulk, or 47 percent of the 15.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Tribeca has 2.4 times the average sales volume among other neighborhoods with $622.6 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, Tribeca has 2.3 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 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 163,097 square feet of the 165,097 square feet. The two identified owners are Hyundai Motor Group and Ksl Capital Partners.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 165,097 square feet of built space are office buildings, with hotel buildings next occupying 40 percent of the space.

The borrower

The PincusCo database currently indicates that Ksl Capital Partners owned at least four commercial properties in New York City with 313,752 square feet and a city-determined market value of $139 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. The bulk, or 76 percent of the built space, is in Manhattan, with Queens next at 24 percent of the space.

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