Marx Development Receives $88M for Hudson Yards Hotel Financing
The 44-story hotel will bring an additional 441 rooms and 3,000 square feet of retail to Hudson Yards.
NEW YORK CITY—The brisk pace of development at Hudson Yards continues to move forward. Marx Development Group obtained an $88 million loan for a Marriott hotel it’s developing in Hudson Yards. Mack Real Estate Strategies provided the 24-month loan which will recapitalize the project and cover pre-development costs. Meridian Capital Group’s managing director Shaya Ackerman and SVP Shaya Sonnenschein negotiated the loan.
EB-5 funds, totaling $66 million, are already being raised though the sponsor’s regional center, Manhattan Regional Center. The funds will be used for the project’s vertical construction, starting after the foundation is poured. The hotel’s construction is expected to conclude in late 2019. With EB-5 funds through the Immigrant Investor Program, foreign nationals can invest a minimum of $500,000 or $1 million (depending on the project’s location) in a new commercial enterprise which creates a minimum of 10 US jobs, in exchange for a green card.
EB-5 Regional Centers pool investment funds which allow for investments in projects that require more capital.
The hotel project will be located at 450 Eleventh Ave. on the corner of West 37th Street in Hudson Yards. The 42-story hotel will span approximately 235,000 square feet, having 441 rooms and 3,000 square feet of retail. The site is directly across from the Jacob K. Javits Convention Center, which is currently finishing up its $1 billion renovation and expansion.
Hudson Yards will comprise more than 18 million square feet of commercial and residential property, and will include office buildings, retail stores and restaurants. Construction on 15 Hudson Yards, a condominium, and 55 Hudson Yards, an office building, is scheduled for completion by the end of the year. The office building at 50 Hudson Yards is anticipated to be completed in 2022.