Mack signs $235M refi with Wells Fargo for seven Manhattan hotels

Mack Real Estate Group through the entity Hcin Chelsea Grand East Associates, LLC as borrower signed a refi loan with lender Wells Fargo valued at $235 million for seven hotel properties including the hotel building (HS) at 339-341 West 39th Street in the Garment District, Manhattan, hotel building (H3) at 343-345 West 39th Street in Garment District, Manhattan, and hotel building (H3) at 337 West 39th Street in Garment District, Manhattan.
The deal closed on June 9, 2025 and was recorded on June 16, 2025. The prior lender was UBSCM 2018-NYCH which held debt that had an original loan amount of $300 million.

The seven properties have 419,102 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $560 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 Mack Real Estate Group was Priyanka Garg . The signatory for Wells Fargo was Jeffrey L. Cirillo . Mack Real Estate Group acquired control from Hersha Hospitality and then refinanced the previously securitized debt, with Wells Fargo.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Murray, head officer and Jay Shah, officer. The business entity is Hcin Duio Three Lessee, Llc. The seven properties with a total of 419,102 square feet of built space generated revenue of $79.4 million per year or $190 per square foot..

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 five DOB violations and $40,975 in OATH penalties in the last year.

Development

For the tax lot buildings, three out of the seven buildings received a initial certificate of occupancy in the last ten years. 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 the 9th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 9.3 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 the tax block of 343-345 West 39th Street, PincusCo has identified the owners of 16 of the 31 commercial properties representing 1,159,669 square feet of the 1,572,885 square feet. The largest owner is Mack Real Estate Group, followed by Gehr Group and then Mcsam Hotel Group.
On the tax block, there were four new building construction projects totaling 100,300 square feet. The largest is a 120-unit, 44,430 square-foot hotel/dormitory/shelter (R-1) building submitted by Brian Law with plans filed September 10, 2015 and it has not been permitted yet. The second largest is a 25-unit, 19,255 square-foot residential (R-2) building submitted by Man Hei Li with plans filed May 15, 2019 and permitted May 25, 2022.

The majority, or 71 percent of the 1.6 million square feet of built space are hotel buildings, with office buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Mack Real Estate Group owned at least 46 commercial properties with 979 residential units in New York City with 1,578,220 square feet and a city-determined market value of $375.9 million. (Market value is typically about 50% of actual value.) The portfolio has $557.2 million in debt, with top three lenders as UBSCM 2018-NYCH, Apollo Global Management, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 25 percent of the 1,578,220 square feet of built space are walkup properties, with hotel properties next occupying 24 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Queens next at 21 percent of the space.

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