Silver Arch Capital Partners announces $30.4m loan closing on Out Hotel, NYC
NEW YORK — Silver Arch Capital Partners announces a $30.4 million loan closing for the purchase of the Out Hotel in midtown Manhattan. The purchase will also herald the return of the legendary Playboy Club to New York City on the hotel’s grounds later this year.
The borrower, real estate management company Merchants Hospitality, Inc., has entered a partnership with hotel and restaurant branding company Cachet Hospitality Group to transform the 105-room, three-story Out Hotel located in Hell’s Kitchen into the future Cachet Boutique New York hotel. Playboy Enterprises, Inc., in turn, has partnered with global hotel entity Cachet to construct a Playboy Club franchise location on the property’s ground floor.
Expected to launch in 2017, the Cachet Boutique New York will be a world-class destination for the sophisticated traveler. The hotel will feature guest rooms adorned with urban chic furnishings and art-deco decor. Amenities include extravagantly expansive and indulgent personal wellness facilities, such as an open-air Zen garden and an outdoor spa and Jacuzzi. A central feature of the hotel, the Great Lawn, is a 2,000 s/f indoor-outdoor wine bar and meeting and event space, complete with crackling fire pits. For on-site dining, the rustic Eden restaurant will provide exquisite cuisine for breakfast, lunch and dinner.
The new Playboy Club is set to open more than 30 years after the original Playboy Club closed in 1986. This latest iteration will feature a lounge bar, full-service dining room, game room and retail shop.
The property is located on West 42nd Street between 10th and 11th avenues in the heart of Theatre Row, a coveted location surrounded by Off-Broadway playhouses, and lies within comfortable walking distance to such popular tourist attractions as the world-famous Times Square and the Intrepid Sea, Air & Space Museum.
All of these exhilarating changes coming to the Big Apple were made possible by Silver Arch Capital Partners, a national private lender with headquarters in Hackensack, NJ.
The Carlton Group was the broker on the transaction. Carlton Group Chairman Howard Michaels and Managing Director Steven Weiss represented the borrower.
“We needed a lender who could think outside the box,” said Weiss. “Jeffrey Wolfer, President and CEO of Silver Arch Capital Partners, was able to quickly underwrite the deal and deliver on a first mortgage bridge loan for the acquisition and renovation of the Cachet Hotel NYC and the iconic Playboy Club.”
“We, along with our partners, are pleased to help Merchants Hospitality kick-start its latest real estate venture,” adds Jeffrey Wolfer. “Borrowers look to us when they can’t secure conventional lending. Silver Arch Capital offers quick loan closings on real estate with unique circumstances that tend to cause traditional lenders to turn away.”