Massey Knakal Capital Services Closes a $5.5 Million Acquisition Loan in Soho
Massey Knakal Capital Services is pleased to announce the closing of a loan for the conversion of an SRO building into The Bowery House, a new luxury hostel concept located in SoHo.
Alessandro Zampedri and Sanford Kunkel converted the space during a lease/option period, upgraded it to a 104-bed luxury hostel and are now planning a restaurant on the ground floor.
“SRO’s and hostels are extremely difficult to finance in today’s market,” says Morris Betesh, a Director in Massey Knakal’s Capital Services division who exclusively handled this transaction. “Nonetheless, we were able to shape a competitive bidding process by strategically marketing the loan. Working with the investors alongside our SoHo territory expert, Senior Vice President of Sales Robert Burton, we provided several sales comparisons for development sites and SRO’s that recently traded in that specific sub-market. This critical data, with the successful business model of The Bowery House and the upside of the upcoming restaurant, made lenders comfortable with the asset’s valuation and allowed the transaction to close in under 30 days,” added Betesh.
“Alessandro Zampedri and Sanford Kunkel of The Bowery House are continuing and enlarging the plan that the original owner, Joey Grill of Click Model Agency, had been developing for over 10 years,” said Robert Burton.
Massey Knakal Capital Services provides unparalleled market knowledge that delivers the most creative financing strategies to meet client needs.MKCS specializes in a variety of debt and equity based real estate financing including fixed rate loans, floating rate loans, construction loans, mezzanine loans and bridge loans.