Sam Chang Gets $121M to Build Hotel at 140 W. 28th St.

The Mcsam Hotel Group, led by Sam Chang, received $121.35 million in debt and equity to build a 45-story, 526-key hotel at 140 W. 28th St. in Manhattan’s Chelsea neighborhood.

The finance package includes a $97.5 million first mortgage from Bank of the Ozarks, and a $23.9 million mezzanine construction loan from Square Mile Capital Management LLC.

Though some lenders now hesitate to finance new construction in New York City, this project has a very strong borrower. “Sam Chang is a proven sponsor and one of the largest hotel developers in the New York City, having completed the construction of over 70 ground-up hotels. No doubt this new hotel in Chelsea will be just as successful,” said Adam Hakim, managing director with Eastern Consolidated, who with James Murad, arranged the financing.

The hotel, which is being built on a vacant parking lot on West 28th Street between Sixth and Seventh Avenues, is expected to open in 2019.

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