MCR Development signs $20M initial loan for hotel in Gramercy

MCR Development through the entity M4 Gramercy Park Hotel LLC as borrower signed an initial loan with lender Bank of Montreal  valued at $20 million for the ground lease controlling the hotel building (H1) at 2 Lexington Avenue in Gramercy, Manhattan.
The deal closed on January 13, 2026 and was recorded on January 15, 2026. The property has 188,933 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $105 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 MCR Development was William White . MCR Development is a ground tenant under a lease signed with landlord, Solil Management, in 2023. $179.8 million

Prior sales, articles and revenue

The owners according to the Department of Housing Preservation and Development includes William White, head officer and Pete Foster, agent. The business entities are Mcr Property Management Llc and M4 Gramercy Park Hotel Llc. The 188,933-square-foot property generated revenue of $25 million or $132 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Gramercy has 188,933 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 131 feet and is 84 feet deep with a total lot size of 10,751 square feet. The lot is irregular. The zoning is R9A which allows for up to 7.52 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $74.5 million. The property has 5 rent regulated units according to city tax records from 2020.

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 $1,950 in OATH penalties in the last year.

The neighborhood

In Gramercy, The bulk, or 31 percent of the 11.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Gramercy has 1.5 times the average sales volume among other neighborhoods with $465.6 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Gramercy has 1.5 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the eight commercial properties representing 335,931 square feet of the 342,205 square feet. The largest owner is MCR Hotels, followed by Feil Organization.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 342,205 square feet of built space are hotel buildings, with elevator buildings next occupying 33 percent of the space.

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