Goldman backs purchase with $275m loan
A Qatari hotel group and investment firm has received a $275m loan from Goldman Sachs for its $513m purchase of The Manhattan at Times Square Hotel.
The buyer is Al Rayyan Tourism and Investment (ARTIC), the international hospitality subsidiary of Al Faisal Holding Company, which also owns the Radisson Blu Chicago and the St. Regis Bal Harbour Resort in Miami Beach, Florida.
The lender, Goldman Sachs, made the loan out of its Broad Street Real Estate Credit Partners II fund, which closed in May with more than $4bn in total capital available to invest.
The buyer is reportedly considering either razing the existing 22-story, 500,000 sq foot hotel to make way for a new 900,000 sq ft tower, or perhaps leaving it intact and constructing a new building adjacent to it, in the place of an existing swimming pool.
The seller, a joint venture made up of Rockpoint Group, Goldman Sachs and Highgate Holdings, purchased the building from Starwood Hotels & Resorts in 2012 for $275m with a $185m loan from Wells Fargo.