CBCS Washington Street LP (CBCS) has announced that bankruptcy proceedings have been concluded in the Southern District of New York with the Bankruptcy Court confirming CBCS's chapter 11 plan of reorganization and authorizing new debt and equity financing to be put in place to facilitate its efforts to complete construction for a project to be located at 456 Greenwich Street in TriBeCa. A 96 room luxury hotel is being developed for the international luxury hotel brand, Le Fouquet's, managed by France's premier luxury operator Groupe Lucien Barriere. The announcement was made by Joshua Caspi, co-general partner, of CBCS.
"The project can see the light again as Hana Financial Investment, a prominent Korean financial institution and a subsidiary of Hana Financial Group which AUM is over $350 billion, will be providing a $135 million construction loan. The loan financing was arranged by Terence Park, principal of VI Group. An additional $ 19.0 million is to be contributed by an equity co-general partner, APW, led by James Parks, an experienced hotel developer and operator along with Caspi Development. All parties, including the ground lessor's President, Vincent J. Ponte and his counsel at Kramer Levin, worked tirelessly and cooperatively to resolve outstanding issues and enable this exciting development to move forward. The partnership is confident that with this financing and additional equity in place, the project will proceed without delay" said Fred B. Ringel, partner, Robinson Brog Leinwand Greene Genovese & Gluck, P.C., attorneys for the partnership.
Teneo Capital served as investment banker and financial advisor to the partnership and provided a feasibility opinion as a foundation for the plan. Chris Wu, President of Teneo's Restructuring Group said, "The exit financing from Hana and the general partners with the landlord's support is a testament to the intrinsic value of the project on one of the greatest development sites remaining in all of TriBeCa and it is sure to be an iconic and marquee hotel." The legal team, in addition to Robinson Brog as attorneys for the partnership, also included, Rosenberg & Estis as the partnership's special real estate and finance counsel, Greenberg Traurig as lender's counsel, Robinson+Cole partnership's construction counsel, Tarter Krinsky & Drogin partnership's special licensing counsel.
Site preparation and foundation work is nearing completion, and a major New York construction manager, AECOM Tishman, has been engaged to build the development, with a completion date scheduled for 2022.