Arrow Real Estate Advisors announced that it has arranged $20 million in refinancing for a 95-key Fairfield Inn & Suites hotel and retail property located at 95 Henry Street in Manhattan’s Lower East Side neighborhood.
The financing was arranged by Morris Betesh, founder and managing partner of Arrow Real Estate Advisors, alongside Omar Ferreira, Jonah Schultz and Zac Cornell, on behalf of United Development & Construction. CTBC Bank USA provided the loan.
The 43,732-square-foot property is situated near the intersection of the Lower East Side and Two Bridges neighborhoods and comprises a 95-room Fairfield Inn & Suites hotel and more than 9,640 square feet of retail space occupied by a supermarket.
“Financing properties subject to ground leases requires a thoughtful approach, particularly when the remaining lease term limits traditional lending options,” Betesh said. “By identifying a lender that understood the property’s structure and the sponsor’s objectives, we secured a solution that not only addressed the existing financing but also delivered additional liquidity and long-term debt service certainty.”
The transaction involved refinancing a leasehold interest with 23 years remaining on the underlying ground lease, a structure that limited the pool of potential lenders. Arrow conducted a comprehensive marketing process to identify a capital partner capable of accommodating the ground lease terms while meeting the sponsor’s financing objectives.
CTBC Bank USA provided a refinancing package that included cash-out proceeds at closing and five years of predictable debt service, offering United Development & Construction additional liquidity and financial flexibility.
