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CMA
July 20, 2018  

Mack Lends $503 Million on 3 Luxury Hotels

Mack Real Estate has originated three loans, totaling $503 million, to a Qatari investor on a trio of luxury hotels.

The floating-rate loans are backed by a total of 1,049 rooms and seven condo-hotel units at properties in New York, Washington and Miami. The borrower, Al Rayyan Tourism Investment, tapped HFF to line up the debt. It used the proceeds to retire existing loans totaling roughly the same amount written by Goldman Sachs.

The Mack loans have three-year terms with two one-year extension options. The largest, for $290 million, is backed by the 685-room Manhattan at Times Square. Built in 1952 at 790 Seventh Avenue, it spans the block from West 51st to West 52nd Streets.

The 22-story building includes 9,100 square feet of retail space, a billboard with Times Square exposure and a garage. Al Rayyan is exploring a possible mixed-use redevelopment of the property, but will continue operating it as a hotel for the term of the loan.

Mack wrote a $132 million loan on the St. Regis Bal Harbour Resort in Miami Beach. The hotel has 192 guest rooms and seven condominiums that are rented out by the owner. Another 14 condos in the building are separately owned. The property has private beach access, meeting spaces, a 7,800-sf ballroom, a spa, two pools and a fitness studio. Al Rayyan undertook a $35 million renovation two years ago that included lobby renovation and the addition of several four-bedroom suites. The hotel is at 9703 Collins Avenue, near 96th Street, across from a high-end retail center, Shops at Bal Harbour.

The third loan, for $81 million, is backed by the 172-room St. Regis Washington, D.C., at 923 16th Street NW, a few blocks north of the White House. The hotel has 11,200 sf of meeting space, several recently renovated meeting rooms and a courtyard.

Al Rayyan, a subsidiary of Al Faisal Holding, acquired the Miami property in 2014 and the others in 2015, for a total of $860 million. The firm builds, acquires and operates hotels in the Middle East, Africa, Europe and North America for its parent, which is led by chairman Sheikh Faisal bin Qassim al-Thani.