Witkoff Eyes Loans on New NY, Calif. Hotels
Witkoff Group partnerships are looking to line up some $550 million of debt on a trendy New York hotel and another under development in California.
The floating-rate loans would be backed by the Public Hotel, which opened last year on Manhattan’s Lower East Side, and the Edition West Hollywood, expected to be completed in a few months. Witkoff and its partners are taking quotes on a loan of about $300 million on the California property and $250 million on the New York hotel, with terms of 5-7 years. Newmark is showing the assignments to lenders.
Witkoff, the New York development shop headed by Steve Witkoff, teamed up with hotelier Ian Schrager and Miami-based New Valley Corp. to construct the 367-room Public Hotel. The building includes 11 residential condominiums on the upper floors. As the project was wrapping up last year, Starwood Capital originated a $173.3 million mortgage to replace construction financing. It’s unclear whether the collateral included any condo units that hadn’t yet been sold, but the new mortgage would be backed solely by the hotel.
The hotel is at 215 Chrystie Street, between East Houston and Stanton Streets. Its features include a fitness center, an eatery and a rooftop bar.
New Valley also is Witkoff’s partner on the Edition West Hollywood. Work on the 190-room upscale hotel and 20 attached residences is expected to be finished in the first quarter. In 2015, the partners obtained $260 million of financing for the project from Cornerstone Real Estate. The next year, The Real Deal reported they had also begun looking to raise $75 million of junior debt on the development via the federal EB-5 program, which grants foreign citizens access to fast-tracked permanent residency in exchange for investments in U.S. developments.
Edition is a high-end brand created by Schrager and Marriott International. There are now 10 hotels under the banner globally. Amenities at the West Hollywood hotel are to include 5,000 square feet of event space, a restaurant, a lounge, a rooftop pool and a spa. The hotel is at 9040 Sunset Boulevard, at North Doheny Drive. The site is west of downtown Los Angeles, about 11 miles east of Santa Monica. ?