LodgeWorks signs $60M refi with Capitol Federal for Archer Hotel in Garment District

LodgeWorks Partners through the entity Manhattan LW Hotel Associates, LP as borrower signed a refi loan with lender Capitol Federal Savings Bank valued at $60 million for the 180-key Archer Hotel building (HB) at 45 West 38th Street in Garment District, Manhattan.
The deal closed on June 20, 2024 and was recorded on June 26, 2024. The prior lender was Aareal Capital which held debt that had an original loan amount of $57.4 million.

The property has 76,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $789 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 August 24, 2011, for $15.6 million. The signatory for LodgeWorks Partners was Seth V. White.

The property

The hotel building in Garment District has 76,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 61 feet and is 98 feet deep with a total lot size of 6,023 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $29.7 million.

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 $1,250 in ECB penalties and $3,910 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 2, 2014. 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 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 1.8 times the average sales volume among other neighborhoods with $487.3 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Garment District is the 4th most active neighborhood among other neighborhoods. It had 6.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 27 commercial properties representing 1,272,171 square feet of the 1,903,078 square feet. The largest owners include Weihong Hu, R&B Realty Group and Michael Besen.
On the tax block, there were two new building construction projects totaling 73,220 square feet. The largest is a 173-unit, 62,062 square-foot hotel/dormitory/shelter (R-1) building submitted by Wei Hong Hu and filed by Wei Hong Hu with plans filed April 20, 2018 and permitted July 24, 2018. The second largest is a 299-unit, 11,158 square-foot hotel/dormitory/shelter (R-1) building submitted by Alan Reich with plans filed December 30, 2016 and permitted January 4, 2019.

The majority, or 70 percent of the 1.9 million square feet of built space are office buildings, with hotel buildings next occupying 23 percent of the space.

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