Atalaya Capital Closes $315M Construction Financing for New Ritz-Carlton Hotel in Manhattan
NEW YORK — Atalaya Capital Management, a private credit and alternative investment advisory firm, has recently closed $315 million in construction financing for The Ritz-Carlton’s new flagship hotel in Manhattan.
Situated at the corner of 28th Street and Broadway, the 266-room hotel will span more than 50 stories and include 16 branded residences, 6,000 square feet of meeting space and high-end food and beverage options.
This project will be the first ground-up hotel construction in New York City completed by Flag Luxury Group, which has developed several upscale hotels and resorts, including four Ritz-Carlton properties in Florida.
Atalaya Capital partnered with CapitalSource, a division of Pacific West Bank, to provide a $250 million senior construction loan to Flag. Atalaya also closed a $65 million preferred equity investment to finance the hotel, which is set for a late 2021 completion.
“We are excited to be working with Atalaya, which worked diligently to structure a creative and comprehensive capital solution to facilitate the development of an iconic brand’s new flagship New York City location,” said Paul Kanavos, CEO and chairman of Flag Luxury Group.
The project team includes general contractor Lend Lease, interior designer Yabu Pushelberg and architect Rafael Vinoly.
Founded in 2006, Atalaya Capital Management is headquartered in New York City and has over $3.5 billion in assets under management. The company predominantly invests in U.S. commercial real estate opportunities via debt instruments. Atalaya Capital’s investments are originated either directly or through operating partner relationships and intermediaries, according to the company’s website.
The Ritz-Carlton is a luxury hospitality brand belonging to Marriott International. There are currently 91 Ritz-Carlton hotels in the world, two of which are in New York — The Ritz-Carlton Central Park and The Ritz-Carlton Westchester in White Plains.
— John Nelson