7 Manhattan hotels head to auction block

first_imgEmail Address* Full Name* Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Mack Real Estate Credit Strategies issued the loan in 2018, according to the mezzanine loan agreement filed with the Securities and Exchange Commission.Hersha and Cindat did not immediately respond to requests for comment. Mack Real Estate declined to comment.The seven hotels are located in Times Square, Chelsea, Herald Square and the Financial District operating under the Holiday Inn, Hampton Inn and Candlewood Suites brands. The properties are at 116 West 31st Street, 108 West 24th Street, 337 West 39th Street, 339 West 39th Street, 343 West 39th Street, 51 Nassau Street and 126 Water Street.The portfolio had been fully owned by Hersha Hospitality Trust until 2016, when the Philadelphia-based trust sold a 70 percent majority interest to Chinese investment firm Cindat Capital Management in a deal worth $571.4 million, The Real Deal reported.In 2018, the joint venture of Hersha and Cindat refinanced loans for the portfolio, with a new $300 million mortgage loan and the $85 million of mezzanine financing.Hodges Ward Elliott is managing the UCC auction on behalf of Mack Real Estate.Contact Akiko Matsuda Message*center_img Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)Seven Manhattan hotels are hitting the auction block.The portfolio, owned by a joint venture between Hersha Hospitality Trust and Chinese investment firm Cindat Capital Management, is scheduled to be auctioned on Jan. 21 as a result of the owner’s default on an $85 million mezzanine loan, according to a public notice.Read moreLeisure and hospitality lost 500K jobs in DecemberHere are the markets where hotels are hurting the mostBusiness at city hotels down a stunning 90% Share via Shortlink TagsCommercial Real EstateDistressFinancial DistrictHotelsmidtown manhattanReal Estate Financelast_img read more