RFR Realty has secured $85m in loans for the $89.7m acquisition – and subsequent improvements to – the Holiday Inn SoHo in Lower Manhattan.
AXA Equitable Life Insurance Company and AB Commercial Real Estate Debt (under the care of Alliance Bernstein) provided the loans, city property records show.
A $70m senior loan is accompanied by a $9m building loan, which in New York must be used towards building improvements; and a $6m project loan, which typically is used for “soft costs,” or expenses relating to the acquisition of land.
Originally built in 1961 and converted to a hotel in 1992, the 14-story, 114,500 sq ft Holiday Inn SoHo features 227 guestrooms and 1,300 sq ft of meeting space.
RFR purchased the property from Rhode Island developer and hotelier The Procaccianti Group, which paid $128.7m for the property in 2007.
The property features about 7,200 sq ft of existing retail space, 2,960 sq ft of which is currently leased. RFR plans a “major repositioning” of the retail, which will be expanded to include more than 9,700 total sq ft. Six additional lodging units with balconies are also in the plans.
The firm owns and manages dozens of properties across asset types, including signature Manhattan office properties, including 375 Park Avenue (The Seagram Building) and 390 Park Avenue (Lever House).