Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-The global hospitality group of Cushman & Wakefield Sonnenblick Goldman has arranged a $43-million refinancing of the Courtyard Manhattan/Midtown East, located at 866 Third Ave. The 312-key property is owned by DiamondRock Hospitality Group, which acquired it in 2004.

Mark Gordon, head of CWSG’s US hotel group, declines to name the capital provider, which he identifies as a life company. According to an SEC filing by Bethesda, MD-based DiamondRock, that company is Massachusetts Mutual Life Insurance Co. Gordon tells GlobeSt.com that the insurer is a first-timer in providing financing during this portion of the cycle–a trend he’s seen lately.

“If you look at five of the most recent hotel loans we’ve completed, and another six we have in the works, all are with new lenders,” says Gordon, an EVP at CWSG. He specifies “new” as lenders who have not been active in this sector for the past seven years; in other words, they did not participate during the peak of the current cycle.

“A whole new generation of lenders has emerged from the current economic situation,” Gordon says. He adds that they’re taking advantage of the downturn to carve out market share.

In a release, Gordon says CWSG was able to structure “a unique transaction which met the specific needs of our client,” including a forward commitment, provided in May of this year, to fund during September. “This loan provision resulted in significant savings for our client.”

Gordon tells GlobeSt.com that the insurer was persuaded to do the refi due to the continuing strong fundamentals of the Manhattan hotel market in general and of the Midtown East property in particular, as well as the property’s institutional ownership by DiamondRock and management by Marriott. According to DiamondRock’s SEC filing, the five-year loan carries a fixed rate of 8.81%. The current financing was due to expire in December of this year.

Along with Gordon, director Jared Kelso and associate Alison Tan represented DiamondRock in arranging the financing.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.