Sixth Ave. hotel project seals $70m loan deal.

Corus Bankshares, Inc. banking subsidiary Corus Bank has finalized a $70 million loan to MG Hotel, LLC, an affiliate of New York based G. Holdings Corporation, to finance the construction of a mixed use building containing a Marriott Residence inn hotel and residential rental apartments located at 1033 Avenue of the Americas in New York.

The 43-story building will contain a 357-suite Marriott Residence inn, as well as 96 residential rental apartments on the top ten floors, approximately 100 parking spaces and two ground floor retail stores. This project has the distinction of being Manhattan's first Residence Inn.

Corus was able to offer the borrower a non-recourse structure and worked closely with the mezzanine lender, iStar Financial, Inc. to simultaneously structure both loans and address such issues as a long-term ground lease.

"Corus is proud to finance the entire first mortgage loan for this project without any syndication." said John M. Barkidjija, Corus Bank senior vice president.

"Corus is able to leverage its lending experience in markets across the country on many types of commercial real estate, including hotels, apartments, condominiums mad office buildings, to become comfortable with projects of all sizes and therefore actively use its lending limit of approximately $91 million, Corus' experience in construction lending will also prove very useful over the duration of this sizable project."

Meanwhile, the bank has also finalized a $19 million loan to Melville Hospitality, LLC to finance the construction of a 147-room Homewood Suites located in Plainview. New York on the Long Island Expressway. The four-story hotel will also contain 3.021 square feet of meeting space.