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Sapir Organization lands refi for 9 Crosby Street

Troubled hotel lost $14 million last quarter

Mandarin Soho Hotel (Credit: NYTimes)

The Sapir Organization has secured a $115 million loan from Goldman Sachs to refinance its struggling hotel at 9 Crosby Street. The SoHo property spans 121,165 SF, and contains 264 rooms.  

Financing Details: The new loan refinances previous debt provided by Credit Suisse in 2015, according to TRD. It also includes a $3 million gap mortgage and $73.3 million from a Sapir-related entity. Although the original loan was set to mature in March 2017, its due date was extended several times.

Flashback: Alex Sapir + Gerard Guez paid $205 million for the hotel at a foreclosure sale in 2014. Sapir subsequently bought his partner’s 49 percent stake in a deal that valued the hotel at $246.3 million.

The Real Story: The hotel reported a $14 million net loss in the third quarter. As a public Israeli company, Sapir was under pressure to replace the loan, but was unable to secure the $180 million he sought. The new interest rate is 5.24 percent.

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