By Joshua Burd
A private lender based in Hackensack has arranged more than $30 million in financing for a client to acquire and reposition a hotel on Manhattan’s West Side, the firm announced.
In a news release, Silver Arch Capital Partners announced the $30.4 million closing for the Out Hotel, located on West 42nd Street between 10th and 11th avenues. The borrower, real estate management company Merchants Hospitality Inc., has entered a partnership with Cachet Hospitality Group to transform the 105-room, three-story property into the future Cachet Boutique New York hotel.
The firm also said Playboy Enterprises Inc. has partnered with Cachet to construct a Playboy Club franchise location on the property’s ground floor. The hotel is expected to launch in 2017.
With guest rooms adorned with urban chic furnishings and art-deco décor, the hotel’s amenities include personal wellness facilities such as an open-air Zen garden and an outdoor spa and Jacuzzi, the news release said. A central feature of the hotel, the Great Lawn, is a 2,000-square-foot indoor-outdoor wine bar and meeting and event space.
The new Playboy Club is set to open more than 30 years after the original Playboy Club closed in 1986, Silver Arch said. This latest iteration will feature a lounge bar, full-service dining room, game room and retail shop.
For on-site dining, the hotel will include the Eden restaurant.
Carlton Group Chairman Howard Michaels and Managing Director Steven Weiss represented the borrower.
“We needed a lender who could think outside the box,” Weiss said in a prepared statement. “Jeffrey Wolfer, president and CEO of Silver Arch Capital Partners, was able to quickly underwrite the deal and deliver on a first mortgage bridge loan for the acquisition and renovation of the Cachet Hotel NYC and the iconic Playboy Club.”
In his own statement, Wolfer said: “We, along with our partners, are pleased to help Merchants Hospitality kick-start its latest real estate venture. Borrowers look to us when they can’t secure conventional lending. Silver Arch Capital offers quick loan closings on real estate with unique circumstances that tend to cause traditional lenders to turn away.”
