If Izak Senbahar wants to sell the Mark Hotel in the Upper East Side, he has a significant offer waiting for him.
An anonymous entity, through an adviser, proposed a $1 billion takeover of the property at 25 East 77th Street, people familiar with the matter told Bloomberg. It’s unclear if Senbahar’s Alexico Group is even looking to sell the property, and could retain ownership despite the 10-figure offer.
Alexico declined to comment to the outlet.
The five-star hotel includes roughly 150 rooms, the most expensive of which goes for $45,000 per night. The hotel also features The Mark Restaurant by Jean-Georges.
Last year, Alexico refinanced the luxury property with a $335 million loan. A bulk of the debt was made up by a $300 million commercial mortgage-backed securities loan provided by Goldman Sachs; the remainder was mezzanine financing held outside of the CMBS trust.
Alexico previously refinanced the 153-key property in 2022 through the CMBS market. That refinancing helped Senbahar stave off foreclosure after Ohana Real Estate Investors moved to foreclose on the hotel early in the pandemic after Alexico allegedly missed multiple payments on a mezzanine loan.
Alexico also refinanced the hotel with $230 million from JPMorgan Chase in 2017 and $265 million overall, replacing a $200 million loan from TPG Real Estate Finance. The jump in the loan size in the intervening years suggests the hotel is considered to be significantly more valuable than it was a handful of years ago, a possibility furthered by the recent anonymous offer.
Should Alexico choose to sell the Mark Hotel for $1 billion — or even close to that number — it would represent a redefining moment for New York City’s hotel market.
Last year, Gencom bought the Thompson Central Park Hotel from GFI Capital Resources Group and Elliott Management for around $289 million, the most expensive transaction of the year; a $1 billion would more than triple that.
— Holden Walter-Warner
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