Eastern Union helps investor realize West Side hotel plan.

Eastern Union Funding has arranged $35,790,000 in financing for the acquisition of a 140,000 s/f vacant land at West 34th St.

The total debt financed represents 105% of the purchase price and 85% of the total acquisition/planning cost of the project. The loan consisted of a senior and mezzanine piece, the senior was for $25,790,000 and the mezzanine was $10,000,000.

Eastern Union was faced with some serious obstacles on this transaction with the main concern being that the site was a former gas station with known environmental issues. Eastern was able to structure a combination of reserves and environmental insurance to successfully mitigate the lenders risk.

The property was bought by 34th St LLC, which is run by a well known real estate investor. The site is within a few blocks from the Javits 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 Theatre 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 in its preliminary planning stages, calls for a 160,000 s/f 17 story building with 300 Keys with some of the suites having large rooftop terraces. The 10,286 s/ft first floor will contain lobby, bar, reception and a commercial restaurant.

The hotel market has heated up significantly in NYC and Eastern Union was able to work with the borrower in helping him take the first step towards realizing his dream for a luxury 5-star hotel in this section of the City.

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.

"Our ability to provide creative structured financing combined with our understanding of the Hotel market allowed for a smooth and quick close to a difficult transaction" said Shaya Ackerman of Eastern's Brooklyn office.