American entrepreneur and hotelier Ian Schrager has scored a major refinancing for the Public Hotel on Manhattan\u2019s Lower East Side, Commercial Observer has learned.<\/p>\n
Schrager secured a $310 million refinance for his 28-story, 367-key hotel at 215 Chrystie Street, according to a source with knowledge of the deal. The deal closed Wednesday.<\/p>\n
SEE ALSO: Thor Equities Refis New Wynwood Sites With $19M<\/a><\/p>\n J.P. Morgan Chase provided the commercial mortgage-backed securities (CMBS) single-asset, single-borrower (SASB) loan, while Newmark<\/a>\u2019s Jordan Roeschlaub, Jonathan Firestone, Nick Scribani and Tyler Dumon brokered the deal, sources said.<\/p>\n News of the deal comes roughly two years after Schrager and co-owner Steve Witkoff were in danger of losing the Public Hotel following a UCC foreclosure and notice of a public auction, as CO previously reported<\/a>. The joint venture had defaulted on an $85 million loan with V\u00e4rde Partners on the hotel, with an auction originally scheduled for September 2023 but delayed multiple times.<\/p>\n Troubles with the 2017-built Public Hotel began in 2020 when Schrager and Witkoff temporarily closed the hotel due to the COVID-19 pandemic<\/a>. It reopened in 2021, but with more than $60 million in debt<\/a>. Madison Realty Capital<\/a> and Newbond Holdings<\/a> acquired the nonperforming debt<\/a> in October 2022 from lenders Deutsche Bank and Aareal Bank, fully accrued to roughly $190 million.<\/p>\n The new refinancing, however, pays off that debt, and the owners\u2019 business plan for 2026 includes a \u201creprogramming\u201d of some of the hotels\u2019 10 food and beverage venues with an undisclosed \u201crenowned restaurant operator,\u201d the source said.<\/p>\n The Public Hotel, located between Stanton and East Houston streets, features several amenities for guests, including private event spaces, health and wellness programs, a rooftop bar, spas and more.<\/p>\n J.P. Morgan Chase<\/a> declined to comment, while Ian Schrager Company<\/a> and Newmark did not immediately respond to requests for comment. Commercial Mortgage Alert first reported news of the deal.<\/p>\n