Atalaya Capital Management, a private credit and special opportunities alternative investment manager, has closed a USD250 million senior construction loan and a USD65 million preferred equity investment to finance Flag Luxury Group’s construction and development of The Ritz-Carlton’s new flagship hotel in New York City.
This project will be the first ground-up hotel construction in New York City completed by Flag, which has developed numerous world-class hotels and resorts, including four Ritz-Carlton properties in Florida.
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.
The property, which is located at the corner of 28th Street and Broadway, in Manhattan’s vibrant NoMad neighbourhood, is being constructed by Lend Lease, and has been designed by award-winning architect Rafael Viñoly, working in collaboration with interior design firm Yabu Pushelberg. Upon completion, the new Ritz-Carlton will be the prize hotel for Marriott in New York City, standing over 550 feet tall, with a total of 266-keys, including 16 branded residences, 6,000 square feet of meeting space, and a world-class food and beverage program. The project is expected to be complete in late 2021.
“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,” says Paul Kanavos of Flag Luxury Group. In closing the construction loan component of the transaction, Atalaya also partnered with CapitalSource, a division of Pacific Western Bank.
“Flag’s success and experience in luxury hospitality development speaks for itself. We also value CapitalSource’s partnership to complete this multifaceted transaction,” says Young Kwon, Head of Real Estate for Atalaya Capital Management.