Yellowstone borrows undisclosed amount from Fortress, secured by $170M loan on Maxwell Hotel

Yellowstone Real Estate Investments through the entity YS 541 Lexington Holdings LLC borrowed an undisclosed amount from Fortress Investment Group through the entity Fortress Credit Corp., secured by Yellowstone’s $170 million note, which is in turn secured by Capstone Equities 697-unit Maxwell Hotel at 541 Lexington Avenue, in Midtown East, Manhattan. The deal closed January 19, 2023, and was recorded on January 25, 2023.
In March 2022, Yellowstone Real Estate Investments through the entity YS 541 Lexington Holdings LLC bought a note with an original principal of $170 million from LoanCore Capital secured by the hotel. That deal closed on March 9, 2022 and was recorded on April 5, 2022. The prior lender was LoanCore Capital which held debt that had an original loan amount of $170 million.

The property has 317,496 square feet of built space according to PincusCo analysis of city data.
This is for the 697-unit Maxwell Hotel, formerly the W New York. Capstone and Highgate purchased the hotel in May 2018 based on a December 2017 contract, for $190 million, and obtained $170 million in senior financing from LoanCore at the time, yielding a relatively high 89.5 percent loan to value percentage. Joshua Zamir is the founder of Capstone Equities. The Real Deal reported in 2018 that Highgate was a partner on this property.

PincusCo reported that Yellowstone in 2022 took control of a Times Square office property from EPIC UK through a deed-in-lieu after Yellowstone bought the debt with an original principal of $150 million in November 2021.

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