Strategic Hotels signs $97.75M refi for Essex Hotel in Midtown West

Strategic Hotels & Resorts through the entity Dtrs Essex House, LLC as borrower signed a refi loan with lender Bank of America and Deutsche Bank valued at $97.75 million for the JW Marriott Essex House hotel building at 160 Central Park South in Midtown West, Manhattan.
The deal closed on September 30, 2024 and was recorded on October 18, 2024. The prior lender was Series 2022-GTWY which held debt that had an original loan amount of $97.8 million.
The two commercial condominium units that make up the building have 321,136 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $304 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 Strategic Hotels & Resorts was Michelle Curttrite. The signatories for Bank of America and Deutsche Bank were Steven Wasser and David Goodman. In 2022, the hotel firm signed a $97.75 million refinance with Goldman Sachs that was packaged into the securitized trust Series 2022-GTWY.

The property

The hotel condo building in Midtown West has 321,136 square feet of built space according to a PincusCo analysis of city data. The city-designated market value for the property in 2022 is $127.7 million. The most recent loan totaled $97.75 million and was provided by Goldman Sachs on August 12, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 2nd highest sale turnover among other neighborhoods in the city with $2.8 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 27.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 36 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

There are no active new building construction projects on this tax block.

The majority, or 65 percent of the 542,982 square feet of built space are hotel buildings, with elevator buildings next occupying 35 percent of the space.

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