Parkview Financial has provided a $207 million loan to help unnamed investors buy and redevelop New York’s shuttered Hudson Hotel into a 438-unit mixed-use apartment complex.
The 385,124-square-foot, 24-story building, one block west of Columbus Circle near Billionaire’s Row within the Clinton neighborhood of western Manhattan, will be turned into apartment units featuring ceilings up to 10 feet, stainless steel appliances and in-unit washer and dryers, Parkview said Monday in a statement. There will also be 30,000 square feet of retail space and 25,000 square feet of office space. The project is expected to be complete in early 2023.
The hotel, located at 353-366 W. 58th St., closed its operations in 2020 because of COVID-19, according to Parkview.
A Parkview spokesperson declined to identify the property’s buyers, except to say they are private investors.
“With a strong demand for rental product in Manhattan, we saw this as a compelling opportunity to lend to an experienced borrower,” Paul Rahimian, Parkview chief executive and founder, said in the statement. “With a smaller unit size, the sponsor plans to market the units at a 20% discount to other properties in the surrounding area, hoping to attract young professionals, students, and small families who appreciate the prime location, best-in-class amenities, and unit interiors featuring high-end finishes at below-market prices.”
With New York’s multifamily vacancy rate sitting near a record low of 2.4% over a 10-year period, the average market rent per unit has jumped to $2,900, according to CoStar data.
Situated on a 0.68-acre land parcel, the property originally opened in 1929 for the American Women’s Association clubhouse and residence for young women, Parkview said. In 1941, it was converted to the Hudson Hotel, and space was leased for commercial uses as well as lodging. In 1997, the hotel was purchased by Morgan Hotel Group and underwent a renovation.
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Parkview provided the loan in conjunction with Montgomery Street Partners. The transaction was negotiated by Morris Betesh, senior managing director, and Alex Bailkin, senior vice president, of Meridian Capital Group.