NEW YORK--(BUSINESS WIRE)--Atalaya Capital Management, a private credit and special opportunities alternative investment manager, recently closed a $250 million senior construction loan and a $65 million preferred equity investment to finance Flag Luxury Group’s construction and development of The Ritz-Carlton’s new flagship hotel in New York City. This project will be the first ground-up hotel construction in New York City completed by Flag, which has developed numerous world-class hotels and resorts, including four Ritz-Carlton properties in Florida.
The property, which is located at the corner of 28th Street and Broadway, in Manhattan’s vibrant NoMad neighborhood, is being constructed by Lend Lease, and has been designed by award-winning architect Rafael Viñoly, working in collaboration with interior design firm Yabu Pushelberg. Upon completion, the new Ritz-Carlton will be the prize hotel for Marriott in New York City, standing over 550 feet tall, with a total of 266-keys, including 16 branded residences, 6,000 square feet of meeting space, and a world-class food and beverage program. The project is expected to be complete in late 2021.
“We are excited to be working with Atalaya, who worked diligently to structure a creative and comprehensive capital solution to facilitate the development of an iconic brand’s new flagship New York City location,” said Paul Kanavos of Flag Luxury Group. In closing the construction loan component of the transaction, Atalaya also partnered with CapitalSource, a division of Pacific Western Bank.
“Flag’s success and experience in luxury hospitality development speaks for itself. We also value CapitalSource’s partnership to complete this multifaceted transaction,” said Young Kwon, Head of Real Estate for Atalaya Capital Management.
About Atalaya Capital Management. Atalaya Capital Management is a privately held, SEC-registered, alternative investment advisory firm. Atalaya focuses on making credit and special situation investments in three principal asset classes – real estate, corporate and specialty finance. Founded in 2006, Atalaya is headquartered in New York City and has over $3.5 billion in assets under management.
About Flag Luxury Group. Flag Luxury Group is a privately held real estate development company, founded in 1997 by Paul Kanavos and Dayssi Olarte de Kanavos, is headquartered in New York City and focuses primarily on luxury hotels and residences as well as land-based entertainment and retail projects. Flag Luxury has developed iconic hotels such as The Ritz Carlton, South Beach, The Ritz Carlton, Bal Harbour, and The Ritz-Carlton, Jupiter.
About CapitalSource. CapitalSource’s Construction Real Estate Finance Group, through established relationships with developers, brokers, subordinate lenders and sponsors, structures end-to-end construction financing solutions for most major property types, including condo, hotel, industrial, multi-family, office or retail projects. CapitalSource is a division of Pacific Western Bank, a Los Angeles-based commercial bank with approximately $24 billion in assets and 74 full-service branches in California and one in Durham, North Carolina. Pacific Western Bank is a wholly-owned subsidiary of PacWest Bancorp (NASDAQ:PACW). For more information, visit capitalsource.com.
