Magna Hospitality pays $159.3M to McSam for hotel in Midtown West

Magna Hospitality Group through the entity NY 48 LLC paid $159.3 million to McSam Hotel Group through the entity Tmhcr 48th Street LLC for the property at 150 West 48th Street in Midtown West, Manhattan.
The deal closed on September 8, 2023 and was recorded on September 12, 2023. The property has 100,104 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,590 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 McSam Hotel Group was Sam Chang. The signatory for Magna Hospitality Group was Gregory Weingart. The contract date was October 26, 2021. This is the smaller of two hotel condo units in a 1,046-key hotel building built by Sam Chang’s McSam Hotel Group on a single tax lot, that is planned to be occupied by three hotel brands. The larger unit with about 189,000 square feet has not sold, according to city records. The buyer signatory, attorney Gregory Weingart, often signs for Magna Hospitality Group of Warwick, Rhode Island. The general contractor for the project, Omnibuild, identifies Magna Hospitality Group as the developer of the project.
Magna Hospitality Group through the entity NY 48 LLC as borrower signed a acquisition loan with lender JPMorgan Chase through the entity Jpmorgan Chase Bank, National Association valued at $83.5 million for the property at 150 West 48th Street in Midtown West, Manhattan.

Magna in the past has purchased hotels from Chang after construction is complete. The LLC tracking website Opencorpdata provides the Headquarters Address for the buying entity, NY 48 LLC, at 300 Centerville Road Suite 300 East Warwick Rhode Island 02886 United States, which is the headquarters for Magna.

Yimby reported in June 2023 the building was about to open. The condo unit purchased is on the right, or east side of the building, when facing it from 48th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Magna Hospitality Group purchased two properties in two transactions for a total of $255 million and has no record it sold any properties over the past 24 months.
The seller McSam Hotel Group purchased one properties in one transactions for a total of 0.0 and sold seven properties in seven transactions for a total of $334.7 million over the same time period.

The property

PincusCo cannot determine the lot area of the 150 West 48th Street parcel at this time.

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 not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of eight of the nine commercial properties representing 3,151,132 square feet of the 3,154,582 square feet. The largest owner is Tribeach Holdings, followed by Sl Green Realty and then Riu Hotels & Resorts.
On the tax block, there were four new building construction projects totaling 627,760 square feet. The largest is a 974-unit, 260,360 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Sam Chang with plans filed December 23, 2019 and permitted February 19, 2020. The second largest is a 650-unit, 248,520 square-foot hotel/dormitory/shelter (R-1) building submitted by RIU Hotels & Resorts and filed by David Wrobel with plans filed April 5, 2017 and permitted February 11, 2019.

The majority, or 63 percent of the 3.2 million square feet of built space are office buildings, with hotel buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Mcsam Hotel Group owned at least 20 commercial properties with 17 residential units in New York City with 1,147,084 square feet and a city-determined market value of $263.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 96 percent of the 1,147,084 square feet of built space are hotel properties, with industrial properties next occupying 3 percent of the space. The bulk, or 77 percent of the built space, is in Manhattan, with Queens next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that Magna Hospitality Group owned at least seven commercial properties in New York City with 1,052,782 square feet and a city-determined market value of $371.8 million. (Market value is typically about 50% of actual value.) The portfolio has $737.4 million in debt, with top three lenders as PIMCO, Blackstone Group, and Apollo Global Management respectively. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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