10/14/2011

Goldman Seeking to Syndicate Hotel Floater

Goldman Sachs is looking to syndicate a $180 million floating-rate loan on a new hotel in Midtown Manhattan.

A group of Kuwaiti investors acquired the 669-room Yotel New York at Times Square West in June for $315 million from the developer, Related Cos. of New York.

The buyers funded part of the purchase price with a $240 million financing package from Atrium Holding of Scottsdale, Ariz., and Centerbridge Partners of New York. The package included a $180 million senior loan. There was also $60 million of subordinate financing, divided roughly evenly between mezzanine debt and preferred equity.

Last month, the Atrium-Centerbridge team sold the $180 million senior loan and part of the subordinate debt to Goldman.

Now Goldman is shopping the entire senior loan, which has a two-year term and three one-year extension options. Goldman has structured the debt as a $140 million senior component and two $20 million pieces of junior debt.

The hotel, which opened in June, is at the base of a 60-story building at West 42nd Street and 10th Avenue, three blocks west of Times Square. The tower, at 440 West 42nd Street, has more than 800 residential units.

The ownership group of the hotel includes two public Kuwaiti companies IFA Hotels & Resorts and Kuwait Real Estate. The majority shareholder of IFA Hotels is International Financial Advisors, an investment company that is owned by the Kuwaiti government.

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