A rendering of the rooftop deck at the 159-key MC Hotel in Montclair — Courtesy: PMZ Realty Capital LLC
By Joshua Burd
The developers of a new 159-key Marriott hotel in downtown Montclair has secured a $37.5 million bridge loan, under a transaction arranged by PMZ Realty Capital LLC.
PMZ, a boutique real estate investment banking firm, announced that it completed the financing for the new MC Hotel at 690 Bloomfield Ave. The Autograph by Marriott venue, which has been developed by The Pinnacle Cos. and The Hampshire Cos., with investment partner Circle Squared Alternative Investments, is due to open later this month and is the first full-service hotel developed in Montclair since 1938.
A public mortgage REIT funded the loan, which has a three-year term with a floating rate based on LIBOR.
“PMZ Realty Capital thrives on challenging deals,” said Michael Sonnabend, managing member, PMZ Realty Capital, noting that the deal was completed before the hotel’s opening and returned cash to the sponsor. “This is a winning outcome for the joint venture between The Pinnacle Companies and The Hampshire Companies and the Township of Montclair gains a first class, new hotel.”
PMZ Realty Capital specializes in hotel real estate investment banking nationwide, with an expertise in sourcing capital for the hospitality industry, according to a news release. The firm noted that the MC hotel includes a rooftop bar and lounge with views of Manhattan, more than 8,500 square feet of meeting and event space, a farm-to-table restaurant and a lobby library.
The building is part of the $120 million, mixed-use effort comprising the Montclair Center Gateway Redevelopment Plan, also known as CentroVerde.
“Urban redevelopment projects are complex and navigating the challenges is what we are passionate about, as together with The Hampshire Companies, we bring the MC Hotel to the Township of Montclair,” said Brian M. Stolar, Pinnacle’s president. “Working with PMZ Realty Capital on the financial structuring of the deal is a crucial element to the project’s success and we relied on their hotel financing expertise.”
PMZ noted that the financing represents the second loan that it has arranged for the hotel, which will be managed by the Aparium Hotel Group.
“PMZ Realty Capital provided their substantial expertise and experience in hotel financing for this brand new Marriott Autograph property,” said Norman Feinstein, Hampshire’s vice chairman.
