Times Square Check-In

Hotels continue to toddle back from the worst of the pandemic’s financial side effects. The joint venture behind a planned 32-story hotel in Manhattan’s Times Square just secured a $120 million loan to finance the voco-branded inn’s construction. And a Miami Beach hotel that last traded for $1.2 million has sold for $20 million.

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— Tom Acitelli, Co-Deputy Editor

Beach Point Capital Provides $120M Construction Loan on Times Square Hotel Project

A joint venture between Flintlock Construction and Atlas Hospitality has secured $120 million of construction financing to develop a 32-story voco-branded hotel in Times Square, Commercial Observer has learned. Santa Monica, Calif-based Beach Point Capital Management supplied the three-year, floating-rate loan with two one-year extension options for the sponsorship’s planned 401-key property at 711 Seventh Avenue on the corner of 48th Street, sources told CO. The hotel will be operated by IHG Hotel & Resorts, which owns the voco brand. Demolition of the former retail site was completed in May and construction is slated to last through the third quarter of 2025. The proposal was one of the last deals approved under previous zoning laws prior to new regulations implemented by New York City’s Department of City Planning requiring developers to undergo a lengthy special permit process to hotels in the five boroughs. Atlas Hospitality signed a 99-year ground lease at 711 7th Avenue last November for $58.9 million, PincusCo reported at the time. The development will mark the first newly-built voco hotel in New York City.

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California Investor Nabs Boutique Miami Beach Hotel for $20M

Private investor Anish Khimani snapped up an Art Deco hotel in Miami Beach for $20 million, with plans to lease it to a short-term rental operator, Commercial Observer has learned. The Tropics Hotel, a three-story building featuring 70 rooms and a pool, was erected in 1941 at 1550 Collins Avenue, south of 16th Street. Khimani, through Bay Area Lodging LLC, used a 1031 tax exchange, paying $15 million in cash and receiving a $5 million, five-year mortgage from the seller, Swiss investor Armando J Opprecht. The deal closed June 29, according to Susan Gale of the Gale Group International at ONE Sotheby's International Realty, who brokered the transaction and declined to name the seller and buyer. Opprech bought the three-story hotel in 1992 for $1.2 million, property records show.

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