Dealmaker: BWE Arranges $120M for New York City Marriott Hotels

(Thumbnail photo of Courtyard by Marriott Long Island City courtesy of BWE)

BWE, Cleveland, closed two loans totaling $120 million to refinance two New York City hotels, the Residence Inn Times Square and the Courtyard by Marriott Long Island City.

Steve Perricone, senior vice president in BWE’s Philadelphia office, originated both loans from an insurance company on behalf of the sponsor, a New York City and southeast Florida-based real estate investor with a focus on hospitality.

The loans, $90 million for Residence Inn Times Square and $30 million for Courtyard by Marriott Long Island City, have 15-year terms with a 15-year amortization period. BWE will service the loans.

Both buildings have a condominium structure and feature personal residences and ground-floor retail in addition to their hotels, all owned by the same group, though the loans only include the hotel portions as collateral.

“Financing hotels can be tricky, especially when the sponsor has certain pricing and structure expectations that need to be met,” Perricone noted. He said BWE identified a lender that could provide two separate self-liquidating loans on a tight closing timeline. 

Built in 2016, the 160-room Courtyard by Marriott is minutes away from Midtown Manhattan by train.

Located in Manhattan’s Times Square, the Residence Inn Times Square has 357 guest rooms within walking distance of New York landmarks including Bryant Park, Rockefeller Center and the Broadway Theatre District.