McSam Hotel Group borrows $210M from S3 Capital for hotel construction in Times Square

Sam Chang’s McSam Hotel Group through the entity Tmhcr 48th Street LLC as borrower signed a loan agreement with lender S3 Capital Partners through the entity S3 Re 150W48 Funding LLC valued at $210 million for 5 parcels, including the tax class land not zoned residential or Manhattan below 110th Street (V1) at 146 West 48th Street, 156 West 48th Street, 160 West 48th Street, 162 West 48th Street, 166 West 48th Street in Times Square. The deal closed on December 18, 2019 and was recorded on January 2, 2020.

In addition to the first lien debt totaling $210 million, there was $40 million in mezzanine debt city records show. Also, Bank OZK lent S3 Capital $187.5 million against the $250 million in total debt as part of a “loan-on-loan” structure, also known as a senior participation loan. The financing was arranged by Emanuel Westfried, according to Real Estate Weekly.

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 300,216 square feet. Those plans include a total of 974 residential or hotel units.
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