July 28, 2021 – MSD Partners and Lionheart Strategic Management has agreed to provide $130m funding to real estate company Lightstone Group for the construction of Moxy LES Hotel in Manhattan in New York, the US.
Located on the Lower East Side in Manhattan, the new 16-storey hotel with approximately 127,000ft2 of total area will include 303-rooms as well as multiple food and beverage venues.
The food and beverage venues will be managed by Tao Hospitality Group.
The new hotel will be the fourth Moxy project that is being developed by Lightstone in New York City.
MSD Partners managing director and Real Estate Credit co-head Jason Kollander said: “We are pleased to join Lionheart in providing financing to Lightstone in developing this new hotel property on the Lower East Side.
“We believe the new Moxy development will be well positioned in this dynamic neighborhood, particularly as New York rebounds from the pandemic.”
The $130m funding includes around $90m senior loan from MSD Partners and the remaining $40m mezzanine loan is provided Lionheart through its current credit vehicle, Lionheart Real Estate Credit Strategies.
Lionheart chairman Winston Fisher said: “This transaction exemplifies our commitment to the resiliency and recovery of New York City and our confidence in its tourism and hospitality industries.
“With Lightstone’s strong track record of successful Moxy developments in New York and across the country, we believe this project will benefit from its prime location and is well positioned to capitalize on robust leisure tourist demand that we anticipate New York City will achieve as the market continues to recover from the effects of the COVID pandemic.”