The Collective Living Secures $39M Loan for Long Island City Hotel
The Collective Living, a landlord and co-living operator, has secured a $39M loan from Argentic for their hotel property in Long Island City.
The Collective Living, a London-based co-living operator, has secured a 39M loan from Argentic for their hotel property in Long Island City. The 80,200 SF property, located at 35-02 37th Ave., was acquired by The Collective Living in 2018 for 28M. The property was previously a paper factory and was converted into a hotel with 125 rooms. The hotel features a rooftop bar, restaurant, and event space.
The loan from Argentic will be used to refinance the existing debt on the property and provide additional capital for future growth. The Collective Living plans to expand their co-living offerings in New York City and other major cities in the US.
The lender, Argentic, is a Los Angeles-based real estate lender that specializes in providing debt financing for commercial real estate properties. The loan has a term of three years and an interest rate of 4.25%. The loan-to-value ratio is 65%.
The Collective Living was represented by Doug Tiesi and Reza Merchant of The Collective Brokerage, the in-house brokerage arm of The Collective Living. The seller of the property was not disclosed.
Long Island City has become a popular destination for hotel developers in recent years due to its proximity to Manhattan and the availability of affordable land. The area has seen a surge in hotel development, with several new hotels opening in the past few years. The Collective Living’s hotel is well-positioned to benefit from this trend, with its prime location and unique co-living concept.