Cushman & Wakefield announced today that it advised affiliates of Hersha Hospitality Trust in the turn-key acquisition financing of the Hyatt Union Square Hotel in Manhattan. The $55 million floating-rate loan was provided by Natixis Real Estate Capital. The property is expected to open this month.
The property is located at 132 Fourth Avenue between 12th and 13th Streets in the heart of one of New York City’s most vibrant commercial and cultural submarkets. The Hyatt Union Square will feature 178 high-quality guestrooms in a contemporary tower atop a landmarked base building. The hotel will also offer a restaurant leased and operated by the team behind the critically acclaimed Tocqueville and 15 East.
Jared Kelso and Ernest Lee of Cushman & Wakefield Global Hospitality represented Hersha in the transaction.
“This transaction demonstrates the robust appetite of balance sheet lenders for hospitality product,” said Kelso, a C&W Managing Director. “The Hyatt Union Square will accommodate an underserved lodging submarket in Manhattan and demonstrates Hersha's continued ability to source unique acquisition opportunities.”
Ernest Lee, a C&W Director, added “The combination of a strong business plan and best-in-class sponsorship generated significant interest from a variety of lenders. We are seeing banks and other balance sheet lenders increase allocations for transitional loans due to the competitiveness of CMBS pricing for stabilized assets.”