Magna Hospitality Group borrows $62M from Wells Fargo for new hotel construction in Chelsea

113 West 24th Street (Credit: Google)

Magna Hospitality Group through the entity Chelsea 24th Street LLC as borrower signed a loan agreement with lender Wells Fargo Bank valued at $62.5 million for an under-construction hotel at 113 West 24th Street in Chelsea. The deal closed on October 17, 2019 and was recorded on October 31, 2019.

The project is to be a Marriott hotel. The $16.2 million remaining from an original Shanghai Commercial Bank loan was assigned to Wells Fargo, which added an additional $45.1 million in new building loan debt and $17.4 million in project loan debt. The bank loan was arranged by the Wells Fargo Hospitality Finance Group. The last time the property sold was October 17, 2019, when Magna acquired it from Lam Generation for $74,159,182.

Over the past five years, there has been one NYC Department of Buildings permit application filed for this parcel valued at more than $20,000. There has been one new building permit application totaling 126,376 square feet. Those plans include a total of 380 hotel units.
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