Bank of the Ozarks has provided $83.5m in construction financing to McSam Hotel Group for the development of a hotel at 346-354 West 40th Street, city property records show.
Square Mile Capital provided a $24.5m mezzanine loan on the property, for a $108m total financing package.
McSam, led by hotel development mogul Sam Chang, purchased an existing seven-story, 58,000 sq ft parking garage at the site for $26.25m early last year. The group plans to redevelop the property into a boutique hotel.
Chang is well-known for his extensive development of budget, limited-service hotels that are a contrast to the New York City’s luxury offerings.
The site is located near the up-and-coming Hudson Yards neighborhood, a 28-acre development that will offer more than 17m sq ft of office, retail, residential and hotel space.