Dealmaker: Meridian Capital Group Arranges $77M for Two Hotels

Meridian Capital Group, New York, arranged $77 million in construction and refinancing funds for hotels in Philadelphia and Brooklyn, N.Y.

In Philadelphia, Meridian Senior Managing Director Morris Betesh, Director Phil Galligan and Vice President Alex Bailkin secured $53.5 million in senior and mezzanine financing for Modus Hotels, Washington, D.C., and Parkway Corp., Philadelphia, to construct a Pod Hotel.

The Pod Hotel concept targets guests looking for a boutique hotel in prime downtown locations. It maintains competitive prices by offering compact guest rooms. Located at 31 South 19th Street, the new Pod Hotel will stand 11 stories and contain 252 rooms in Center City adjacent to Rittenhouse Square.

Betesh said Modus Hotels and Parkway Corp. received a 36-month non-recourse construction loan.

“This is evidence that good deals with good sponsors can get done in this difficult construction financing environment,” said Modus Hotels CFO Adam Gollance.

Meridian also secured $23.5 million from a balance sheet lender to refinance the Box House Hotel in Brooklyn. Senior Managing Director Cary Pollack and Vice President Judah Neuman arranged the interest-only loan.

The Box House Hotel is a four-story, 130-key property at 77 Box Street in Brooklyn’s Greenpoint neighborhood. The sponsor redeveloped the property from warehouse space into a hotel in 2012 and recently added three floors with 71 new rooms and a rooftop event space with Manhattan skyline views.

Located on the northernmost point in Brooklyn, Greenpoint is accessible from Manhattan via the G subway line and the East River Ferry.