Sam Chang’s McSam sells 520-key Hell’s Kitchen hotel for $166.5M

An entity connected with Magna Hospitality Group through NY 39th Street LLC paid $166.5 million to McSam Hotel Group through the entity Lopm 39 De LLC for the 520-room hotel (H1) at 350 West 39th Street in Hell’s Kitchen, Manhattan.

Magna Hospitality Group through the entity Ny 39th Street LLC as borrower signed a acquisition loan with lender Blackstone Group through the entity Breds Iv Loan Holdings Gs Spe Seller L.L.C. valued at $115.0 million for the hotel (H1) at 350 West 39th Street in Hell’s Kitchen, Manhattan.

The deal closed on September 17, 2021 and was recorded on October 1, 2021.
The property has 179,130 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $929 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 Magna Hospitality Group was Gregory Weingart.
(121193608)The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 520 residential units on August 26, 2020. (121193608) Plans for a 520-unit, 147,863 square-foot R-1 were filed on July 24, 2015 and were permitted on February 6, 2017.
Magna Hospitality’s address is the care of for the LLC.  Magna has acquired other hotels during covid.

Within a 400-foot radius of 350 West 39th Street, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, two were sales above $5 million totaling $347.3 million. The most recent of the two was Mack Real Estate Credit Strategies which bought the 42,012-square-foot, one-unit hotel (H3) on 343 West 39th Street and six other properties for $315.8 million from Hersha Hospitality Trust and Cindat Capital Management on March 4, 2021.
Of those 10 items, eight were loans above $5 million totaling $662.5 million. The most recent of the eight was Mack Real Estate Credit Strategies which borrowed $300.0 million from UBSCM 2018-NYCH secured by the 42,012-square-foot, one-unit hotel (H3) on 343 West 39th Street and five other properties on June 14, 2021.

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