Shanghai Commercial Bank’s New York branch has provided a $222 million financing package on a Virgin Hotel development in the NoMad neighborhood of Manhattan.
The Chinese bank provided the loan to an affiliate of the LAM Group, the developer on the project. The package refinanced $57.3 million of existing debt that Cathay Bank provided to the developer in October of 2014 and added additional mortgage debt in the form of a $54.8 million project loan and a $109.9 million building loan, according to city records.
LAM Group broke ground on construction at the 1205, 1225 and 1227 Broadway sites between 29th and 30th Streets, a few blocks south of the Empire State Building, in September. The hotel is set to open in 2018, according to Virgin’s website. Development plans filed with the city’s Department of Buildings depict a 38-story tower with 400,000 sq ft of floor space and 447 hotel rooms.
The real estate investment firm reportedly purchased three buildings at the development site for $88 million in 2011 and 2012. The city approved the buildings for demolition in 2013, which began the following year.
Founded by John Lam, the LAM Group has developed over 50 projects, with the majority of the firm’s hotels located in New York, including Aloft Brooklyn, Four Points by Sheraton Manhattan Chelsea and Fairfield Inn & Suites by Marriott New York Manhattan/Fifth Avenue.
The NoMad neighborhood has attracted a number of hotel developments within the last several years. In 2009, the Ace Hotel opened on the corner of 29th Street and Broadway, and in 2010 the Gansevoort Hotel opened on Park Avenue South and 29th Street.
Shanghai Commercial Bank New York Branch and LAM Group were not immediately available for comment.