McSam Hotel Group signs $203M refi with Oak Hill Advisors for two Manhattan hotels

Sam Chang’s McSam Hotel Group through the entity Sccq Rock Hotel LLC as borrower signed a refi loan with lender Oak Hill Advisors through the entity Re-Us Sam Nyc Pack II, LLC valued at $203 million for three properties including the 17-unit hotel building at Le Meridien Hotel at 292 5th Avenue in Penn Station, Manhattan, and the Radisson Hotel New York Midtown-Fifth Avenue at 25 West 51st Street in Midtown West, Manhattan.
The deal closed on December 30, 2021 and was recorded on January 13, 2022. The prior lenders were S3 Capital, Madison Realty Capital and Apollo Global Management which held debt that had an original loan amount of $155 million on the two hotels in separate deals.
The three properties (the 25 West 51st Street hotel is owned through two commercial hotel condos) have 169,799 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,195 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 Oak Hill Advisors was Gregory S. Rubin.
(121184789) Plans for a 182-unit, 68,783 square-foot R-1 were filed on February 11, 2014 and were permitted on January 11, 2019.
The financing includes a $48 million gap loan. Greg Rubin is general counsel and partner at Oak Hill.
In Penn Station, the majority, or 68 percent of the 22.9 million square feet of built space are office buildings, with residential elevator buildings next occupying 11 percent of the space. In sales, Penn Station has near average sales volume in the city with $315.7 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Penn Station has 2.6 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 2.4 million square feet of commercial construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.
On the tax block, the majority, or 60 percent of the 1.2 million square feet of built space are office buildings, with hotel buildings next occupying 30 percent of the space.
Within a 400-foot radius of 292 5th Avenue, Pincusco identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, one was in new building development. It was a new building permit application filed on November 29, 2021 for a 509,193-square-foot R-2 building with four residential units at 273 5th Avenue.
Of those 10 items, two were for major renovation including a certificate of occupancy change. They were one permit with a total initial cost of $10.4 million and one initial temporary certificate of occupancy issuance for a project that initially costed $500,000. The most recent of these two items was the permit on September 24, 2020 for a 526,540-square-foot B building with no residential units at 295 Fifth Avenue.
Of those 10 items, two were sales above $5 million totaling $242 million. The most recent of the two was Starpointe Management which bought 22 condo units in the 828-square-foot, 260-unit mixed-use building (RM) on 277 Fifth Avenue and 0 other properties for $80.9 million from Victor Group and Lendlease on November 24, 2021.
Of those 10 items, five were loans above $5 million totaling $287.9 million. The most recent of the five was Vanbarton Group which borrowed $89.4 million from Otera Capital secured by the 0-square-foot development site (V1) on 9 West 29th Street and eight other properties on September 9, 2021.

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