Banking: Private debt lender swoops in on Hudson Hotel redevelopment loan as commercial banks stall

by | May 16, 2023 | Stock Market

Northwind Group founder Ran Eliasaf said his private credit firm is stepping in to fill a void from commercial banks as a lender in the redevelopment of the former Hudson Hotel on West 58th Street in New York City into apartments. Northwind Group is providing $100 million in capital for the 24-story hotel, which closed in the wake of the COVID-19 pandemic after decades as a local destination designed by Ian Schrager, the firm announced Tuesday.

“The biggest need is in the senior debt,” Eliasaf said. “That piece would be typically provided by a commercial bank but most are on the sidelines.” The financing comes about a year after CSC Coliving acquired the hotel from Eldridge Industries for $207 million. Also Read: How $4 trillion in Treasurys parked at banks could become a ticking time bomb if the debt-ceiling fight triggers a U.S. default Northwind Group, a $3 billion AUM real estate private equity firm that runs three private funds, announced Tuesday it provided the $100 million in the form of a senior A-Note, as part of a $207 million senior leasehold mortgage for the property. The loan was secured by the Hudson Hotel, which formerly housed 878 rooms now being converted into 441 multifamily units and 51,474 square feet of retail space. The property was capitalized by Montgomery Street Partners as the fee holder and Parkview Financial, which provided a leasehold mortgage in 2022. Also Read: Here’s why people are still worried about regional b …

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