Warwick Hotels & Resorts signs $70.5M loan with Citibank for hotel in Midtown West

Warwick Hotels & Resorts through the entity Silver Autumn Hotel (N.Y.) Corporation Ltd. as borrower signed a loan with lender Citibank through the entity Citi Real Estate Funding Inc. valued at $70.5 million for the hotel building (H1) at 65 West 54th Street in Midtown West, Manhattan.
The deal closed on October 24, 2023 and was recorded on October 30, 2023. The prior lender was HSBC Bank which held debt that had an original loan amount of $80 million.
The property has 274,656 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $256 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 Warwick Hotels & Resorts was Michael Sheh. The signatory for Citibank was Jonathan Misher. This refinances an $80 million loan from 2013.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Sheh, head officer and Garret Corcoran, officer. The business entity is Silver Autumn Hotel (Ny) Corp Ltd.

The property

The hotel building in Midtown West has 274,656 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 120 feet deep with a total lot size of 12,083 square feet. The zoning is C6-6 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 $76.5 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 two DOB violations, $10,000 in ECB penalties, and $14,675 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 20, 2013. 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 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 20 million square feet of commercial and multi-family construction under development in the last two years, which represents 26 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

On this tax block, PincusCo has identified the owners of 17 of the 28 commercial properties representing 933,101 square feet of the 1,502,530 square feet. The largest owner is Solil Management, followed by Sol Goldman Investments and then Sl Green Realty.
On the tax block, there were two new building construction projects totaling 459,510 square feet. The largest is a 96-unit, 432,306 square-foot residential (R-2) building submitted by Skyline Developers and filed by Leonard Wilf with plans filed May 8, 2020 and permitted February 8, 2023. The second largest is a four-unit, 27,204 square-foot residential (R-3) building submitted by Lawrence Boudreau with plans filed April 7, 2014 and it has not been permitted yet.

The majority, or 49 percent of the 1.5 million square feet of built space are hotel buildings, with office buildings next occupying 48 percent of the space.

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