Chris Xu, the head of United Construction and Development Group has secured a huge loan recently. The loan is for $44 million, and Xu has big plans for it. He will develop a Marriott hotel very close by to LaGuardia Airport, a hotel that will have 338 keys. The loan is a mortgage with two one-year extension options and a non-recourse acquisition classification.
The tower per se will have 15 stories and will span 203,800 square feet. It will be addressed at 148-18 Archer Avenue in Jamaica Queens. Two different Marriott brands will be contained within this same building. There will be one area designated as Marriott Courtyard (224 rooms) and a second one under the Fairfield Inn & Suites name (114 rooms). If everything goes according to plan, the hotel will be done by the end of the year.
Xu was represented by two former Cushman & Wakefield executives: Morris Betesh and Omar Ferreira. Betesh said that because of how spotless their client’s track record was, they were able to secure the loan without much of a hassle, despite the “tight hotel lending environment”. Xu’s company has a good record when it comes to development, construction and hotel management before different lenders’ eyes, so the final decision was not a surprise.
As far as the lot goes, Xu had acquired it back in 2014 for $22 million. That transaction caught some attention back then because it was the most expensive one to happen in Downtown Jamaica for at least a decade. The site was originally formed by two separate parcels, which used to house several stores and a parking area. [REW Online]