UK’s digital bank OakNorth provided a $45 million loan to Aya New York. Established back in 2009 by industry professional Amir Shriki, Aya New York is a Manhattan-based real estate investment company focused on acquiring and repositioning “distressed” and “mismanaged” assets in prime New York City locations, which has been involved in more than $4.5 billion worth of transactions following its inception.
The group reportedly brings local expertise and an ability to unlock value in off-market and so-called “underperforming” real estate opportunities.
The loan from OakNorth should now aim to part-fund the acquisition and refurbishment of the 166-key, Cassa Hotel, situated at 70 West, 45th Street.
Built in 2010, the 48-story mixed-use building also consists of a restaurant on the lower floor, and residential condominiums at the upper levels.
Post-renovation, the hotel should be relaunched under the new brand name, Lady D, and will be operated by Hersha Hospitality Management, a hotel operator, which manages more than 250 hotels across the United States and Canada.
Amir Shriki, Founder of Aya New York, commented:
“Our strategy has … been to identify underperforming assets with strong underlying fundamentals and reposition them into … properties. The Cassa Hotel is an … example of this approach given it is an exceptionally located building in Midtown Manhattan that, with the right investment and operational expertise, can once again become a landmark hospitality destination. With OakNorth’s support and Hersha Hospitality Management’s operational experience, we are confident of delivering on this vision.”
Tommy Tran, Director of Debt Finance at OakNorth, added:
“As a direct result of Amir’s leadership and experience, Aya New York have built a … track record in New York real estate, demonstrating an ability to execute complex projects and deliver strong outcomes for investors and communities. This transaction is another … example of OakNorth’s ability to support … sponsors with … growth plans. We are excited to play a role in bringing the Cassa Hotel back to life and contributing to Midtown’s vibrant hospitality market.”