New Ritz-Carlton to Call Manhattan Home
Atalaya Capital closed $315 million in financing for Flag Luxury Group’s construction of the NoMad hotel, which is slated for a 2021 delivery.
By Keith Loria
Ritz-Carlton Westchester in White Plains, N.Y.
Atalaya Capital Management has secured $315 million in financing on behalf of Flag Luxury Group to construct a new flagship Ritz-Carlton Hotel in Manhattan. Located at the corner of 28th Street and Broadway, in New York’s up-and-coming NoMad neighborhood, the property is being designed by Rafael Viñoly and constructed by Lendlease.
Atalaya closed on a $250 million senior construction loan and a $65 million preferred equity investment. In closing the construction loan component of the transaction, Atalaya also partnered with CapitalSource, a division of Pacific Western Bank.
“We are excited to be working with Atalaya, who worked diligently to structure a creative and comprehensive capital solution to facilitate the development of an iconic brand’s new flagship New York City location,” Paul Kanavos, Flag Luxury Group CEO, said in a prepared statement.
NYC hospitality powers through
Once finished, the new Ritz-Carlton will rise more than 550 feet and include 266-keys, with 16 branded residences, 6,000 square feet of meeting space and a world-class food and beverage program. The hotel is scheduled for completion in late 2021.
The flagship hotel will be Flag’s first ground-up hotel construction in New York City, though the developer has numerous world-class hotels and resorts in its portfolio, including four Ritz-Carlton properties in Florida.
It’s been a busy time in the New York hospitality arena. In June, a 42-story, 235,000-square-foot Marriott-branded hotel planned by Marx Development Group for the $20 billion mixed-use Hudson Yards project on Manhattan’s Far West Side received $88 million in financing from Mack Real Estate Credit Strategies; The 234-key Margaritaville Resort Times Square is being developed by a partnership including Soho Properties and MHP Real Estate Services. That hotel is scheduled to open in 2020; and Lightstone recently topped out of construction at the 349-key Moxy Chelsea Hotel.
Image courtesy of Atalaya Capital Management
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