Maverick signs $107.1M construction loan with Related for hotel project in Garment District

Maverick Real Estate Partners through the entity Penn District Hotel LLC as borrower signed a new construction loan with lender Related Companies through the entity RDF Agent, LLC valued at $107.1 million for the hotel development project (H1) at 255 West 34th Street in Garment District, Manhattan.
The deal closed on April 7, 2025 and was recorded on April 11, 2025. The property has 157,517 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $679 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 Maverick Real Estate Partners was David Aviram. The signatory for Related Companies was Peter Weidman. In 2022, Maverick Real Estate Partners bought the defaulted $110 million in debt on the development site being developed by Chetrit Group.  Maverick took control off the property on January 31, 2023, for $104.5 million.

The property

The hotel building in Garment District has 157,517 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 79 feet and is 98 feet deep with a total lot size of 7,883 square feet. The city-designated market value for the property in 2022 is $32.6 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $19.5 million money judgment concerning a loan filed on February 20, 2025, by Maverick Real Estate Partners against Meyer Chetrit. In addition, according to city public data, the property has received one DOB violation and $750 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project, 122745100, for a 300-unit, 157,517 square-foot hotel (R-1) building. The project was submitted by Chetrit Group and filed by Meyer Chetrit with plans filed April 5, 2016 and permitted November 15, 2019.

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 4.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 8th highest in Manhattan. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 7.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 19 of the 27 commercial properties representing 1,516,925 square feet of the 2,262,329 square feet. The largest owner is Circle Realty Group, followed by Jenel Real Estate and then Metlife.
On the tax block, there were three new building construction projects totaling 196,772 square feet. The largest is a 300-unit, 157,517 square-foot hotel/dormitory/shelter (R-1) building submitted by Chetrit Group and filed by Meyer Chetrit with plans filed April 5, 2016 and permitted August 21, 2017. The second largest is a 27,048 square-foot business (B) building submitted by Churchill Real Estate Holdings and filed by Jake Borden with plans filed April 26, 2016 and permitted December 10, 2018.

The majority, or 75 percent of the 2.3 million square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Maverick Real Estate Partners owned at least six commercial properties with 43 residential units in New York City with 214,538 square feet and a city-determined market value of $30.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 73 percent of the 214,538 square feet of built space are hotel properties, with elevator properties next occupying 11 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 14 percent of the space.

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