NEW YORK—A partnership between Chetrit Group and Clipper Equity has received $115 million in acquisition and construction financing for the purchase and redevelopment of the Flatotel hospitality property located at 135 West 52nd Street in New York City. Meridian Capital Group LLC negotiated the financing with Ronnie Levine, managing director, and Emanuel Westfried, vice president, leading the deal.
The three-year, non-recourse, interest-only loan features a floating LIBOR-based interest rate and a one-year extension option.
Currently vacant, the property stands 47 stories tall and contains 288 rooms with 14,000 sq. ft. of meeting space. The Chetrit Group and Clipper Equity partnership plans to embark on a $250 million renovation of the property to convert it into a five-floor boutique office condominium and a 37-floor residential condominium. Plans for the 64,400-sq.-ft. office component will be located on floors two through seven, which the 173-unit residential units will span floors eight through 47.
The Chetrit Group and Clipper Equity team acquired the property from a venture between Rockpoint Group, Atlas Capital and Procaccianti Group.