Merchants Hospitality, New York’s largest privately held hospitality company, has successfully closed financing on another one of their hotel properties with a new $38 million mortgage for its Z Hotel in Long Island City. The mortgage was financed by Taconic Capital Advisors, the $6 billion global investment firm.
The $38 million financing replaces the construction financing that Merchants utilized to completely renovate the hotel and retail spaces over the last 12 months. The financing, along with over $15 million in equity, was utilized for the acquisition and renovation which includes the newly created 100 room lifestyle hotel which features unparalleled views of Manhattan and the East River. Merchants Hospitality recently signed a major lease at the Z Hotel with NEP Group, Inc., the international audio video broadcast technology company. Part of the renovation included the recently developed and newly opened Savanna Rooftop Lounge, one of Merchants Hospitality’s award-winning brands. Merchants will also open its 4th Treadwell Park at the Z Hotel in the Spring of 2020. The balance of the retail space is being marketed by Jeff Roseman and Ross Kaplan of Newmark Knight Frank.
Merchants Hospitality was advised on the transaction by Robert Verrone, Chris Herron and Kevin Thomson of Iron Hound Management. Iron Hound, Merchants long-time capital advisor, has closed on over $1.5 billion in financing for Merchants Hospitality and its principals including Starwood Resort & Casablanca Casino, Cachet Hotel, 237 Park Avenue and 450 West 33rd Street, currently known as 5 Manhattan West in Hudson Yards.
The Z Hotel, currently managed by Real Hospitality Group, is known for its unobstructed, 180-degree skyline views of Manhattan and floor-to-ceiling windows in every room. The property includes 45,000 square feet of retail, office, food & beverage and amenity space. The hotel features a complimentary breakfast and luxury shuttle service, dramatic outdoor spaces, sophisticated modern hotel rooms and suites, and concierge services for its hotel guests.