El-Ad Completes Re-Financing of Plaza Hotel

NEW YORK—(BUSINESS WIRE)—El-Ad Group and Kingdom Holding, owners of the iconic Plaza Hotel in New York, have completed a $260 million refinancing of the hotel portion of the fully restored 1907 landmark, it was announced by Miki Naftali, President and CEO of El-Ad, the New York headquartered international real estate organization.

The financing was provided by a consortium of banks headed by HSBC Bank USA, and includes a $40 million mezzanine loan provided by Transwestern Realty Finance Partners, L.L.C. The financing will be used to convert the hotel’s construction loan into a long-term, permanent mortgage for the hotel.

“We obviously faced strong head winds in this most challenging credit market of our times, but the strength of El-Ad, the quality of the hotel, the success of the operation and the power of the Plaza brand prevailed,” Mr. Naftali said. “The hotel sets the highest standard for luxury, elegance and service,” he said.

Glenn Grimaldi, Executive Vice President, HSBC Bank USA, said, “We are delighted to continue as the senior lender in this transaction. HSBC and El-Ad Group have a working relationship that has been forged over many years. El-Ad has done a fantastic job renovating the Plaza that fits 21st century standards of luxury while retaining its Old World charm.”

Michael Girimonti, Senior Vice President of Transwestern Realty Finance Partners’ New York office, who arranged the mezzanine transaction for Transwestern, said, “We are pleased to have financed such a high quality investment in this environment in terms of the trophy caliber of the asset, superb location and its financial characteristics.” Added Transwestern Managing Director Thomas McCahill, “Our focus now more than ever is on top quality, high performing assets in major markets, supported by experienced, well capitalized sponsors and this deal meets all those criteria.”

The Plaza has 282 rooms and suites, including 152 hotel condominiums and 130 generous hotel rooms for overnight guests. The hotel, restored to its 1907 glory also includes such extraordinary interior landmarks as the Palm Court, the Grand Ballroom, and the Oak Bar and Oak Room. The hotel is part of the nearly 1 million-square-foot landmark purchased by El-Ad in 2004 for $675 million and painstakingly restored at a cost of more than $400 million. Other components include the Plaza’s 181 Private Residences, which are all but sold out achieving record-breaking prices, and the soon to open multi-level Plaza Retail Collection.

Contacts
Linden Alschuler & Kaplan, Inc. Public Relations
Lloyd Kaplan, 212-575-4545
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