A joint venture between Island Capital Group, MCR Hotels and Three Wall Capital has nabbed a $155 million loan to refinance The Lexington Hotel in Midtown Manhattan.
Hudson Bay Capital provided the loan on the sponsorship’s historic 1929-built property it acquired in 2021. The 725-key hotel has six specialty suites, including the Norma Jeane Suite, where Marilyn Monroe lived with then-husband and New York Yankees great Joe DiMaggio.
Walker & Dunlop arranged the transaction with a New York capital markets team led by Jordan Casella, Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz and Christopher de Raet.
“This transaction not only underscores the resilience of the New York City hospitality market but also reaffirms the enduring appeal of this city as a major tourist and business destination,” Casella, who was lead broker on the deal, said in a statement. “The quality of the asset, along with the strength of the sponsor team, generated significant interest from the capital markets for the refinance.”
Located at 511 Lexington Avenue on the corner of East 48th Street, the 28-story hotel became part of the Marriott Autograph Collection in 2023 following extensive renovations. Its amenities include 3,000 square feet of meeting space, a Crunch Fitness and a Starbucks.
Island Capital, led by Andrew Farkas, purchased the iconic hotel in July 2021 along with partners MCR and Three Wall Capital for $185 million from DiamondRock Hospitality Company. The deal involved a $125 million acquisition loan from HPS Investment Partners.
Farkas and officials for Hudson Bay Capital did not immediately return requests for comment.
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease
Channel, Finance, Refinance, Andrew Farkas, Jordan Casella, New York, New York City, Manhattan, Midtown East, Hudson Bay Capital, Island Capital Group, MCR Hotels, Three Wall Capital, Walker & Dunlop
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