Meridian Capital Group, America’s most active dealmaker, arranged $400 million in recapitalization and redevelopment financing for the Hudson Hotel in the Midtown West neighborhood of New York, NY.
This transaction was negotiated by Meridian Senior Managing Director, Morris Betesh, and Senior Vice President, Alex Bailkin, who are both based in the company’s New York City headquarters. The recap was sourced from multiple institutional investors including Parkview Financial and Montgomery Street Partners who provided Ground Lease proceeds.
Located at 353-366 West 58th Street, the Hudson Hotel spans 362,800 square feet, consists of nearly 1,000 keys and occupies half a city block in the heart of Billionaires’ Row. The sponsor plans to convert the hotel into a 440-unit multifamily property comprised of studio- to three-bedroom apartments. The property benefits from its advantageous location just one block southwest of Columbus Circle and steps from Central Park, providing immediate access to Manhattan’s expansive public transit system with nine subway lines within three blocks of the building. Hudson Hotel also offers immediate access to various performance venues, art galleries, and specialty shops, as well as nearby tunnels and bridges leading to the outer boroughs and regional airports.
“This transaction was extremely complex and required careful coordination between multiple capital providers. This deal demonstrates the continued investment by smart and creative capital providers for well located assets in New York. The revitalized property is sure to remain a landmark and a key destination in the Columbus Circle and Upper West Side neighborhoods,” said Betesh.
“With a strong demand for rental product in Manhattan, we saw this as a compelling opportunity to lend to an experienced borrower,” said Paul Rahimian, CEO and Founder with Parkview Financial. “With a smaller unit size, the sponsor plans to market the units at a 20% discount to other properties in the surrounding area, hoping to attract young professionals, students, and small families who appreciate the prime location, and unit interiors featuring high-end finishes at below market prices.”
“With Manhattan rental vacancy at historic lows, this project represents an opportunity for MSP’s Ground Lease REIT to participate in an exciting multifamily redevelopment of a historic property in the heart of New York City,” said Max Nipon of MSP.