The sponsor — one of the most prominent developers in New York City — had acquired the Excelsior Hotel directly on Central Park, across from the American Museum of Natural History, with plans to convert the asset into 134-unit multifamily property featuring Class A fnishes and amenities. The project represented one of a small number of hotel-to-multifamily conversions ever executed in Manhattan. The total capitalization of the transaction is more than $100 million.
The client's existing debt fund lender had grown increasingly difficult: limited construction draws, unexpected term changes during the work-out, and a lack of responsiveness that threatened the conversion timeline. With a hard maturity deadline approaching, the sponsor needed a reliable capital partner — and needed one fast.
Bauta Capital Advisory introduced the sponsor to a national private banking group with the balance sheet capacity and underwriting conviction to take out the incumbent and finance the conversion. We structured a bespoke facility providing flexible draw mechanics, extended term, and the certainty-of-execution the sponsor required — closed inside the 40-day maturity window. The new financing package provided extension options and flexibility for the Sponsor to execute on his strategy.