BWE, a national commercial and multifamily mortgage banking company, announced today that it has closed two loans totaling $120,000,000 to refinance the Residence Inn Times Square and the Courtyard by Marriott Long Island City, two major hotels in New York City.
Steve Perricone, senior vice president in BWE’s Philadelphia office, originated both loans from an insurance company on behalf of the sponsor, a New York City and Southeast Florida-based real estate investor with a focus on hospitality. The loans, $90M for Residence Inn and $30M for Courtyard by Marriott, have 15-year terms with a 15-year amortization period as well as very favorable interest rates. BWE is the servicer on the loans. Both buildings have a condominium structure and feature personal residences, garage, and ground-floor retail in addition to their hotels, all owned by the same group, though the loans only include the hotel portions as collateral.
“Financing hotels can be tricky, especially when the sponsor has certain pricing and structure expectations that need to be met. When BWE was approached to help secure loans for the Residence Inn and Courtyard by Marriott, we worked closely with our client to identify a lender who could provide two separate self-liquidating loans on a tight closing timeline. Thanks to our strong relationship with both the sponsor and a range of insurance company lenders, we were able to identify and negotiate a strong deal that will allow the borrower to operate these two high-performing hotels far into the future,” said Perricone. “BWE is committed to using our deep expertise in hospitality to help owners and operators secure the financing they need to be successful.”
Initially built in 2016, the Courtyard by Marriott has 160 rooms and a wide range of amenities for guests, including a 24-hour fitness center, an onsite restaurant, and meeting spaces. One of the first hotels constructed during Long Island City’s rapid development, the Courtyard by Marriott is just a few minutes away from Midtown Manhattan by train and is walking distance from Queens’ best entertainment and restaurants.
Located in the heart of Manhattan, the Residence Inn has 357 rooms for guests and features amenities like full in-room kitchens, a complimentary breakfast buffet, and ample meeting space. Given its central location, the hotel is within walking distance of many of New York’s greatest landmarks, including Times Square, Bryant Park, Rockefeller Center, and the Broadway Theatre District.