MCR signs $30M refi loan with Maxim Capital Group for hotel in Midtown West

MCR through the entity MCRopp New York Royal44 LLC as borrower signed a refi loan with lender Maxim Capital Group through the entity Maxim Credit Group, LLC valued at $30 million for the Royalton New York hotel building (HB) at 44 West 44th Street or 47 West 43rd Street in Midtown West, Manhattan.
The deal closed on November 29, 2023 and was recorded on December 11, 2023. The prior lender was Western Alliance Bank which held debt that had an original loan amount of $26.1 million.

The property has 103,750 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $289 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.)
MCR bought the property on September 4, 2020, for $40.8 million. The signatory for MCR was William White. The signatory for Maxim Capital Group was Eric Chan.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Tyler Morse, head officer and Siobhan Delaney, officer. The business entities are MCR and MCRopp New York Royal44 Tenant LLC.

The property

The hotel building in Midtown West has 103,750 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 200 feet deep with a total lot size of 10,041 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $29.2 million. The most recent loan totaled $26.1 million and was provided by Western Alliance Bank on September 4, 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 $2,200 in OATH penalties 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 neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 19.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 25 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 455,504 square feet of the 1,234,508 square feet. The largest owner is Rabina Properties, followed by Princeton Club and then MCR.
On the tax block, there was one new building construction project filed totaling 523,188 square feet. It is a 98-unit, 523,188 square-foot business (B) building submitted by Rabina and filed by Ian Klein with plans filed January 4, 2021 and permitted September 1, 2022.

The majority, or 77 percent of the 1.2 million square feet of built space are office buildings, with hotel buildings next occupying 22 percent of the space.

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