Palette Hotels, LCRE Group sign $82.4M refi for hotel in FiDi

Palette Hotels and its affiliate LCRE Group through the entity 151 Maiden LLC as borrower signed a refi loan with lender Wells Fargo valued at $82.4 million for the AC Hotel New York Downtown hotel building (H2) at 151 Maiden Lane in Financial District, Manhattan.
The deal closed on December 15, 2025 and was recorded on December 30, 2025. The prior lender was Shanghai Commercial Bank which held debt that had an original loan amount of $85 million. The property has 139,891 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $589 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 July 23, 2014, for $32 million. The signatory for Palette Hotels and LCRE Group was Richard Lou . The signatory for Wells Fargo was John G. Nicol .

Prior sales, articles and revenue

The owners according to the Department of Housing Preservation and Development includes Richard Lou, head officer and Craig Kepple, site manager. The business entity is 151 Maiden Llc. The 139,891-square-foot property generated revenue of $23.4 million or $167 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Financial District has 139,891 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 132 feet and is 53 feet deep with a total lot size of 6,700 square feet. The lot is irregular. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $41.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $2,050 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 4, 2018. On the lot, there is one active new building construction project, 121185680, for a 98-unit, 138,196 square-foot R-2 building. The project was submitted by Fortis Property Group and filed by Akivia Kobre with plans filed May 9, 2014 and permitted February 12, 2016.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 18.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 23 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 10 commercial properties representing 180,197 square feet of the 372,517 square feet. The largest owner is Lam Generation, followed by China Oceanwide Holdings and then Edison Properties.
On the tax block, there was one new building construction project filed totaling 138,196 square feet. It is a 98-unit, 138,196 square-foot residential (R-2) building submitted by Fortis Property Group and filed by Akivia Kobre with plans filed May 9, 2014 and permitted February 12, 2016.

The majority, or 56 percent of the 372,517 square feet of built space are hotel buildings, with industrial buildings next occupying 18 percent of the space.

The borrower

The PincusCo database currently indicates that Palette Hotels owned at least one commercial property in New York City with 31,520 square feet and a city-determined market value of $9.4 million. (Market value is typically about 50% of actual value.) The portfolio has $20 million in debt, borrowed from Hanmi Bank. The portfolio consists of at least a single hotel property. It is located in Queens.

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