Jul 26, 2021

MSD Partners and Lionheart Strategic Management Provide $130 Million in Financing to Lightstone Group for Moxy LES Hotel

NEW YORK, July 26, 2021 /PRNewswire/ -- MSD Partners, L.P. and Lionheart Strategic Management LLC ("Lionheart") today announced the closing of approximately $130 million in financing to the Lightstone Group to capitalize the ground-up construction of Lightstone's Moxy hotel located on the Lower East Side in Manhattan.

The project, which is a 16-story, 303-key hotel property totaling approximately 127,000 square feet, will include multiple food and beverage venues that will be managed by Tao Hospitality Group. Lightstone's Moxy hotel on the Lower East Side will be the fourth Moxy project developed by Lightstone in New York City.

The financing is comprised of a $90 million senior loan provided by MSD Partners, L.P., and a $40 million mezzanine loan provided by Lionheart through its current credit vehicle, Lionheart Real Estate Credit Strategies LLC.

"This transaction exemplifies our commitment to the resiliency and recovery of New York City and our confidence in its tourism and hospitality industries," said Winston Fisher, Chairman of Lionheart. "With Lightstone's strong track record of successful Moxy developments in New York and across the country, we believe this project will benefit from its prime location and is well positioned to capitalize on robust leisure tourist demand that we anticipate New York City will achieve as the market continues to recover from the effects of the COVID pandemic."

"We are pleased to join Lionheart in providing financing to Lightstone in developing this new hotel property on the Lower East Side," said Jason Kollander, the Co-Head of Real Estate Credit and a Managing Director of MSD Partners. "We believe the new Moxy development will be well positioned in this dynamic neighborhood, particularly as New York rebounds from the pandemic."

Drew Anderman and Benjamin Nevid of Meridian Capital Group represented the sponsors in the transaction.

About MSD Partners
MSD Partners, L.P. is an SEC-registered investment adviser that was formed in 2009 by the principals of MSD Capital, L.P. to enable a select group of investors to invest in strategies that were developed by MSD Capital (the private investment firm for Michael Dell and his family). MSD Partners utilizes a multi-disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities. MSD Partners is headquartered in New York with an additional office in Santa Monica. Additional information regarding MSD Partners may be found at msdpartners.com.

About Lionheart Strategic Management LLC
Lionheart Strategic Management, LLC was established in 2017 as the asset management vehicle for an affiliate of Fisher Brothers to manage investments for individuals of the firm and on behalf of third party investors seeking exposure to real estate strategies with a primary focus on top urban markets within the United States. Additional information regarding Lionheart may be found at www.lionheartstrategic.com.

About Lightstone
Lightstone, founded by David Lichtenstein, is one of the largest and most diversified privately held real estate companies in the United States. Lightstone is active in 24 states across the country, developing, managing and investing in all sectors of the real estate market, including residential, hospitality, commercial, and retail. With 127 existing properties, Lightstone's over $6.5 billion portfolio currently includes over 4 million square feet of office, retail and industrial commercial properties, over 15,000 residential units, and 4,100 hotel keys. Lightstone also owns over 10,000 land lots across the country. Headquartered in New York City, Lightstone continues to grow its development portfolio with over $3.5 billion currently under development in the residential and hospitality sectors spread across New York City, Los Angeles and Miami.

Media Contacts

For MSD Partners:
Todd Fogarty
Kekst CNC
todd.fogarty@kekstcnc.com
212-521-4854

For Lionheart:
Erin Holin
BerlinRosen
erin.holin@berlinrosen.com
917-232-0701

SOURCE MSD Partners, L.P.; Lionheart Strategic Management LLC