The Witkoff Group and Mubadala Investment Company have secured a $615 million loan package from JP Morgan and Deutsche Bank to refinance the Park Lane Hotel at 36 Central Park South. The mortgage consists of $425 million in mezzanine debt and a $158.3 million gap mortgage, according to TRD.
Financing details: The five-year, floating-rate mortgage replaces $266 million in previous debt provided by Wells Fargo at the time of the acquisition in 2013, CO reported. Some of the new money will be injected into the hotel, which was once considered as a prime candidate for residential condos.
Political Angle: The 631-key hotel has been ensnared in the 1Malaysia Development Berhad fraud scheme. The prime minister of Malaysia at the time, Najib Razak, was accused of funneling around $700 million from the state’s sovereign wealth fund into his personal accounts. He subsequently took that money to buy an 85 percent stake in asset, which Mubadala subsequently reacquired.