Hotel on Rivington deal closes on burgeoning LES.

CRG Realty Capital, LLC, of Englewood, NJ, the exclusive financial advisor to CLS Management and Paul Stallings, the developer of The Hotel on Rivington, announced that it has closed a $40,250,000 loan with Goldman Sachs--bringing the developer long-awaited recognition of his grand bohemian vision on the Lower East Side.

CRG has been involved with the project since inception, advising Stallings on the original land acquisition and construction financing--that helped make the developer's dream a reality. "Four years ago, no one believed a luxury hotel would make it on the Lower East Side," said Stallings. "But together with Mitch Adelstein and the CRG team, we convinced others how truly ground-breaking this hotel would be."

Stallings, a developer in the East Village and Lower East Side, created the Hotel on Rivington and its popular "Thor" restaurant as a gathering place for tourists and executives from the fashion, media and creative industries to gather and celebrate the Lower East Side.

The deal cements CRG's longstanding relationship with the avant-garde developer of the Hotel on Rivington, a glimmering 21-story glass tower that looms over Manhattan's trendy Lower East Side, drawing rock stars, celebrities, and young hipsters to the neighborhood's newest destinations.

According to CRG President Mitchell Adelstein, "the lending environment for project like this has changed dramatically over the past four years due to the emergence of the neighborhood and the success of projects like The Hotel on Rivington."

The hotel offers 360-degree city views from its floor-to-ceiling windows, steam showers and custom soaking tubs from Finland, flat-screen tv's and electronic window shades. Rooms at the hotel are decorated by top designer India Mahdavi. The biomorphic-egg entryway is designed by Marcel Wanders.

Today, Hotel on Rivington is surrounded by new clubs and trendy shops that are altering the once gritty neighborhood and attracting an entire new generation to the Lower East Side, where nightly room rates range from $350 to $5,000 for the triplex penthouse with terrace and hot tub. Locals and hipsters alike have been filling the Hotel's chic new "Thor" restaurant and lounge that features a 21 foot-high glass atrium and cutting-edge design.

Goldman Sachs provided financing for the hotel, according to CRG President Mitchell Adelstein, who praised Goldman Sachs for "sharing our client's vision for a cutting edge design-forward hotel in the emerging Lower East Side and their ability to close the deal quickly."

"Often lenders will wait much longer to see how a hotel will season before they commit to this level of financing ... Goldman stepped up because they believed in the success of the project and management's ability to perform," he added.

CRG Realty Capital, LLC is an advisor to developers and investors on arranging equity and debt capital and structuring transactions. CRG has been an active player in the Downtown Manhattan market and recently arranged a $55 million construction loan for the new Thompson Lower East Side Hotel on Allen Street. CRG has been an advisor to Paul Stallings for over eight years and has arranged capital for over a dozen projects built by the Wall Street lawyer-turned developer in the Lower East Side and East Village.