Sam Chang’s McSam Hotel Group has acquired a mental health facility at 334 West 36th Street with the help of a $40m loan from Pembrook, Real Estate Capital has learned.
The loan carries a 79% loan-to-value ratio based on the corresponding $50.8m acquisition of the property, located in a section of town packed densely with a number of other projects that are part of Chang’s growing New York City hotel empire.
The 59,000-square-foot, six-story building, between Eighth and Ninth Avenues, is currently occupied by The Postgraduate Center for Mental Health, a provider of a range of mental health services. It wasn’t clear when the mental health services company would move out or when any conversion process might begin.
Chang, who did not return calls seeking comment, has been particularly busy as of late. Among ongoing projects, he is reportedly constructing a 250-room Hilton Garden at 326 West 37th Street, he recently completed a Holiday Inn at 585-587 Eighth Avenue and 39th Street, and he sold the Hilton Garden Inn Midtown East for more than $85m.
Earlier this year the 54-year-old also announced he would retire by the year’s end, but he’s showing no signs of slowing down.
Pembrook declined additional comment beyond confirming that the loan was made, but an outline of the firm’s lending platform shows that it will typically lend up to five years at LTVs up to 85%, on loans as large as $30m.
The firm does have an existing relationship with Chang, however, which may have pushed the threshold in terms of the $40m tag on the latest loan.
Pembrook earlier this year provided the hotelier with a reported $25m loan on the acquisition of the 326 West 37th Street project, located just one block away. Gene Kaufman – a longtime collaborator of Chang’s – is reportedly designing a hotel at that address.