KSL Capital ups debt to $131.5M with Wells Fargo, Citibank for 3 hotels in Manhattan, Brooklyn

Denver-based KSL Capital Partners refinanced $131.5 million in debt with lenders Wells Fargo and Citibank for three hotels, the Hyatt Union Square New York, the Hilton Garden Inn New York/Tribeca and the NU Hotel Brooklyn, in Manhattan and Brooklyn, in three separate transactions. The prior total debt was $121 million.

In the first, KSL Capital Partners through the entity Hhlp Union Square Associates, LLC as borrower signed a refi loan with lender Wells Fargo and Citibank valued at $64.4 million for the Hyatt Union Square New York hotel building (H1) at 134 4th Avenue in Greenwich Village, Manhattan.
The deal closed on November 28, 2023 and was recorded on December 11, 2023. The prior lender was Wells Fargo which held debt that had an original loan amount of $56 million.
The property has 88,211 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $729 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 April 9, 2013, for $101 million. The signatory for KSL Capital Partners was Kevin Rohnstock. The signatory for Wells Fargo and Citibank was Jonathan Misher and John Gordon Nicol.

In the second transaction, 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 $45.5 million for the Hilton Garden Inn New York/Tribeca hotel building (H3) at 39 Sixth Avenue also known as 2 York Street in Tribeca, Manhattan. The deal closed on November 28, 2023 and was recorded on December 11, 2023. The prior lender was M&T Bank which held debt that had an original loan amount of $47 million.The property has 65,283 square feet of built space and 6,174 square feet of additional air rights for a total buildable of 71,481 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $696 and the price per buildable square foot is $635 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 KSL Capital Partners was Kevin Rohnstock. The signatory for Wells Fargo and Citibank was Jonathan Misher and John Gordon Nicol.

In the third transaction, KSL Capital Partners through the entity 44 Smith Street Lessee, LLC as borrower signed a refi loan with lender Wells Fargo and Citibank valued at $21.8 million for the NU Hotel Brooklyn condominium unit at 85 Smith Street in Boerum Hill, Brooklyn. The deal closed on November 28, 2023 and was recorded on December 11, 2023. The prior lender was Citibank which held debt that had an original loan amount of $18 million.The property has 47,639 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $456 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 14, 2007, for $17.2 million. The signatory for KSL Capital Partners was Kevin Rohnstock. The signatory for Wells Fargo and Citibank was Jonathan Misher and John Gordon Nicol.

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 $2,350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 1, 2013. 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 Greenwich Village, The bulk, or 24 percent of the 22.4 million square feet of commercial built space are specialty buildings, with hotel buildings next occupying 17 percent of the space. In sales, Greenwich Village has 3.3 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 11th highest in Manhattan. For development, Greenwich Village has 3.1 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 91,535 square feet of the 504,834 square feet. The two identified owners are Zg Capital Partners and Topaz Realty Management.
On the tax block, there was one new building construction project filed totaling 69,504 square feet. It is a 69,504 square-foot business (B) building submitted by Samsom Klugman with plans filed June 10, 2016 and it has not been permitted yet.

The majority, or 40 percent of the 504,834 square feet of built space are retail buildings, with office buildings next occupying 27 percent of the space.

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