McSam Hotel Group signs $24.6M refi for hotel in Hell’s Kitchen

McSam Hotel Group through Sam Chang as borrower signed a refi loan with lender Sterling National Bank valued at $24.6 million for the hotel building at 322-326 West 44th Street in Hell’s Kitchen, Manhattan.
The deal closed on July 16, 2021 and was recorded on March 2, 2022. The prior lender was Sterling National Bank which held debt that had an original loan amount of $25 million.
The property has 35,420 square feet of built space and 15,351 square feet of additional air rights for a total buildable of 50,778 square feet according to PincusCo analysis of city data. The loan price per built square foot is $695 and the price per buildable square foot is $485 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 owner bought the property on May 11, 2007, for $6.8 million.
The signatory for McSam Hotel Group was Sam Chang and Samir R. Ghandhi. The signatory for Sterling National Bank was Michael A. Savarese.
(121192075)The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 114 hotel rooms on October 22, 2018. (121192075) Plans for a 114-unit, 35,225 square-foot hotel R-1 were filed on November 26, 2014 and were permitted on December 7, 2015.
In Hell’s Kitchen, the bulk, or 39 percent of the 45 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.5 times the average sales volume among other neighborhoods with $972.1 million in sales volume in the last two years and is the 13th highest in Manhattan. For development, Hell’s Kitchen has 1.3 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
On the tax block, the majority, or 53 percent of the 920,236 square feet of built space are hotel buildings, with office buildings next occupying 19 percent of the space.

Within a 400-foot radius of 322/326 West 44th Street, Pincusco identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, one was in new building development. It was a new building permit application filed on March 9, 2020 for a 294,761-square-foot R-2 building with 321 residential units at 312 West 43rd Street.
Of those 11 items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on August 18, 2020 for the $600,000 renovation of 0-square-foot S-2 building with N/A residential units at 332 West 44th Street.
Of those 11 items, five were sales above $5 million totaling $1.7 billion. The most recent of the five was Gottesman family which bought the 0-square-foot, one-unit industrial (G1) on 330 West 44th Street and 27 other properties for $1.6 billion from Gottesman family on March 9, 2021.
Of those 11 items, four were loans above $5 million totaling $553 million. The most recent of the four was Taconic Partners which borrowed $204 million from Union Labor Life Insurance Company secured by the 62,416-square-foot, one-unit office building (O3) on 305 West 42nd Street and one other property on December 16, 2021.

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