Prime Finance buys $45M note secured by Fortuna’s Hotel Hugo
Prime Finance, part of the Prime Group, purchased a note secured by Fortuna Realty Group’s Hotel Hugo at 525 Greenwich Street between Spring and Vandam streets in Soho.
The original loan, signed in October of 2018 had a principal of $45 million from M&T Bank.
The deal closed on February 11, 2022 and was recorded on February 16, 2022. Frederick C. Ross was the signatory for M&T Bank, which assigned the loan to Prime Finance.
Prime Finance invests in “in dislocated CRE capital structures with an emphasis on middle-market sized distressed debt opportunities,” according to its website.
The hotel located at the property is called Hotel Hugo. Fortuna Realty Group owns several other hotels in Manhattan including Hotel Hendricks, Hotel Hayden and Hotel Henri.
Fortuna Realty Group did not immediately respond to a PincusCo request for comment.
The property has 59,720 square feet of built space according to PincusCo analysis of city data.
Fortuna Realty Group bought the property on June 6, 2011, for $12.8 million.
(120771218) Plans for a 122-unit, 48,704 square-foot R-1 were filed on August 2, 2011 and were permitted on July 13, 2012.
In Hudson Square, the majority, or 68 percent of the 11.5 million square feet of built space are office buildings, with residential elevator buildings next occupying 12 percent of the space. In sales, Hudson Square has 2.9 times the average sales volume among other neighborhoods with $796.5 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Hudson Square has 2 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.
On the tax block, the majority, or 54 percent of the 1.3 million square feet of built space are office buildings, with residential elevator buildings next occupying 37 percent of the space.
The owners according to the Department of Housing Preservation and Development includes Morris Monian, individual owner and Pablo Migoya, site manager.
Within a 400-foot radius of 523 Greenwich Street, PincusCo identified six commercial real estate items of interests occurred over the past 24 months. Of those six items, one was in new building development. It was a new building permit issued on January 21, 2021 for a 852,912-square-foot B building at 310 Hudson Street.
One of those six items was a sale which DivcoWest bought the 193,813-square-foot, five-unit office building (O6) on 323 Hudson Street for $134.1 million from Jamestown on June 2, 2021.
Of those six items, four were loans above $5 million totaling $148.6 million. The most recent of the four was Vendome Property Management Company which borrowed $5.9 million from New York Community Bank secured by the 4,260-square-foot, four-unit mixed-use building (S3) on 324 Spring Street and one other property on September 27, 2021.
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