NEW YORK CITY — Square Mile Capital Management LLC has provided a $205 million loan for the development and construction of a 618-room Marriott Moxy Hotel in Times Square. Two institutional investors provided an additional $125 million in loans.
Lightstone Group, a real estate investor and developer, is repositioning a 16-story property located at the intersection of 37th Street and 7th Avenue. The building was originally constructed in 1907 as an 1,885-room residential building and was converted in the 1980s into a retail and office property. For the conversion, Lightstone vacated the former tenants and the interior has been demolished.
“Marriott is the leader in defining the next generation travel and lifestyle space, and Moxy hotels are fun lifestyle hotels with smartly designed and technologically advanced rooms, coupled with generous socially activated public space,” says Mitchell Hochberg, president of Lightstone.
“Our partnership with Marriott puts Lightstone at the forefront of the rapidly growing lifestyle hotel sector in the New York City area,” continues Hochberg. “Square Mile’s leading support of this project is a testament to Lightstone as a developer of choice for budget lifestyle hotels in the New York market.”
The building consists of H-shape floorplate that would not be possible to construct ground-up today, according to Square Mile Capital.
“This latest debt investment in the hospitality sector positions us well in the early stages of the exciting new micro-hoteling trend,” says Michael Lavipour, principal with Square Mile. “It also establishes a lending relationship with Lightstone, which will be at the forefront of the trend developing two additional hotels of this type under the Moxy brand. Marriott’s first-time involvement at the brand level made this transaction even more compelling.”
The new Marriott Moxy Hotel will feature restaurants, a lobby bar and lounge, café, rooftop fitness center, collaborative workspaces and a rooftop bar with over 5,000 square feet of adjoining outdoor space.