Bank of America has provided $64.2m in financing to OTO Development and Palmetto Hospitality for the construction of a hotel at 252 West 40th Street in Manhattan’s Garment District.
The developer plans a 23-story limited-service hotel with nearly 300 rooms and more than 100,000 sq ft of floor space, said a source with knowledge of the plans.
The site is located across 40th Street from the New York Times Building and just around the corner from the Port Authority Bus Terminal.
Construction crews today were busy hoisting wood paneling and other supplies up the scaffolding that surrounds an existing four-story structure, which previously housed a parking garage, car rental agency and bridal fabric shop that occupied a ground-level retail space for nearly four decades.
OTO Development owns and operates a portfolio of Hilton, Marriott, Hyatt and Starwood Select Service hotels in key markets across the country. Palmetto manages a number of those.
Bank of America did not immediately respond to requests for comment regarding the loan terms.