Market Overview

Atalaya Capital Closes $315MM Financing for New Flagship Ritz-Carlton Hotel in Manhattan


Atalaya Capital Management, a private credit and special opportunities
alternative investment manager, recently closed a $250 million senior
construction loan and a $65 million preferred equity investment to
finance Flag Luxury Group's construction and development of The
Ritz-Carlton's new flagship hotel in New York City. This project will be
the first ground-up hotel construction in New York City completed by
Flag, which has developed numerous world-class hotels and resorts,
including four Ritz-Carlton properties in Florida.

The property, which is located at the corner of 28th Street
and Broadway, in Manhattan's vibrant NoMad neighborhood, is being
constructed by Lend Lease, and has been designed by award-winning
architect Rafael Viñoly, working in collaboration with interior design
firm Yabu Pushelberg. Upon completion, the new Ritz-Carlton will be the
prize hotel for Marriott in New York City, standing over 550 feet tall,
with a total of 266-keys, including 16 branded residences, 6,000 square
feet of meeting space, and a world-class food and beverage program. The
project is expected to be complete in late 2021.

"We are excited to be working with Atalaya, who worked diligently to
structure a creative and comprehensive capital solution to facilitate
the development of an iconic brand's new flagship New York City
location," said Paul Kanavos of Flag Luxury Group. In closing the
construction loan component of the transaction, Atalaya also partnered
with CapitalSource, a division of Pacific Western Bank.

"Flag's success and experience in luxury hospitality development speaks
for itself. We also value CapitalSource's partnership to complete this
multifaceted transaction," said Young Kwon, Head of Real Estate for
Atalaya Capital Management.

About Atalaya Capital Management. Atalaya Capital Management
is a privately held, SEC-registered, alternative investment advisory
firm. Atalaya focuses on making credit and special situation investments
in three principal asset classes – real estate, corporate and specialty
finance. Founded in 2006, Atalaya is headquartered in New York City and
has over $3.5 billion in assets under management.

About Flag Luxury Group. Flag Luxury Group is a privately
held real estate development company, founded in 1997 by Paul Kanavos
and Dayssi Olarte de Kanavos, is headquartered in New York City and
focuses primarily on luxury hotels and residences as well as land-based
entertainment and retail projects. Flag Luxury has developed iconic
hotels such as The Ritz Carlton, South Beach, The Ritz Carlton,
Bal Harbour, and The Ritz-Carlton, Jupiter.

About CapitalSource. CapitalSource's Construction Real
Estate Finance Group, through established relationships with developers,
brokers, subordinate lenders and sponsors, structures end-to-end
construction financing solutions for most major property types,
including condo, hotel, industrial, multi-family, office or retail
projects. CapitalSource is a division of Pacific Western Bank, a Los
Angeles-based commercial bank with approximately $24 billion in assets
and 74 full-service branches in California and one in Durham, North
Carolina. Pacific Western Bank is a wholly-owned subsidiary of PacWest
Bancorp (NASDAQ:PACW). For more information, visit

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