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US: Mix of finance for LA nightclub and hotel entrepreneur’s Park Avenue South property.
Sam Nazarian and his development partner, New York-based Moin Development Corp, have secured funding from HKS Capital Partners, for its forthcoming 190-room New York project.
HKS arranged a mix of two types of financings – one of which, an EB-5, was a first for the firm.
Ayush Kapahi, a partner at HKS who worked on the deal, told The Mortgage Observer: “We actually secured the financing, which was a blend of a first mortgage from a conventional local bank in a construction facility and we paired it with an EB-5 financing structure. It just so happens that the Chinese are heavily, heavily the ones jumping on board at this point because it does require for a family to be able to invest $500,000 at a given time, so you need to have somewhat of a deep pocket in order to be able to pull off the investment.”
HKS provided nearly US$50 million for the project, for the redevelopment of the site in New Yorks NoMad district, and the start of construction. Nazarian and Moin Development bought the site in August 2011 for $45 million.
“They already acquired it. This is the refinancing, restructuring and the construction component to get to a finished product,” said Kapahi.
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