OTO Development borrows $90M from Fifth Third Bank for new hotel in Garment District

OTO Development through the entity Palmetto Hospitality Of Manhattan Iii, LLC as borrower signed a loan agreement with lender Fifth Third Bank valued at $90.0 million for 1 parcel, including the tax class luxury type hotel built after 1960 (H2) at 252 West 40th Street in Garment District. The deal closed on February 13, 2020 and was recorded on February 13, 2020.
The property contains a total of 120,566 square feet of built space. The property has 120,929 square feet of available development rights.
The average loan per buildable square foot is $744.
This is permanent financing following the completion of the hotel in 2018.
The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 290 residential (or hotel) units on April 2, 2018.
Over the past five years, there have been 5 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 3 renovation/alteration projects (A2) applied for with a total estimated value of $773,000.There has been one new building permit application totaling 120,489 square feet. Those plans include a total of 290 residential or hotel units. There has been one demolition project filed for the parcels over the past five years.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link