Eastern Union arranges financing for west side hotel venture.

Eastern Union Funding has arranged $55,734,363 in financing for the acquisition of vacant land, with approvals to build up to 200,000 s/f.

The total debt financed represents 105% of the purchase price and 87% of the total acquisition/ planning cost of the project.

The property was bought by 34-11 Development LLC, which is run by a city real estate developer. The principal had a Time of the Essence closing date which was rapidly approaching when he contacted Shaya Ackerman at Eastern Union. Ackerman introduced the client to a lender who grasped the dynamics of the project, thereby facilitating a timely closing.

Eastern Union has a strong previous relationship with the client, having just completed a loan for $35,790,000 for another vacant piece of land on 34th street in New York City.

The site is located at 556 West 37th Street, directly across from the Jacob K. Javits Convention Center, and will be a small part of the billions of dollars in planned new development associated with the Javits Center expansion. In addition, the site is a transportation hub, located just a few blocks of Penn Station, Port Authority and with access routes to the Lincoln Tunnel and Midtown Tunnel. The site is within a short walk of the Theater District, Restaurant Row, Macy's and within walking distance of the Midtown Office District that includes the new AOL/Time Warner Center. The project (which is still in its preliminary planning stages) calls for a 200,000 gross square foot, 30 story building with 350 keys with some of the suites having large rooftop terraces. The first floor will contain lobby, bar, reception and a commercial restaurant, with 25,000 s/f of meeting space.

Leading the team for Eastern Union was Shaya Ackerman of the Brooklyn office who worked hand in hand with the president of Eastern, Ira Zlotowitz, to ensure the successful close of this transaction.

"This transaction was particularly satisfying for Eastern," said Zlotowitz. "It is the second consecutive deal we closed on vacant land at 105% of PP and have once again demonstrated our strong understanding of the hotel market."