NEW YORK—Silver Arch Capital Partners, private lender to the commercial real estate market, has closed a $30.4-million loan for the purchase of the Out Hotel in Midtown Manhattan. The Playboy Club will also return to New York City on the hotel’s grounds later this year.
The borrower, real estate management company Merchants Hospitality Inc., has partnered with Cachet Hospitality Group to rebrand and redesign the 105-room, three-story Out Hotel into the future Cachet Boutique New York Hotel. Playboy Enterprises Inc. has partnered with Cachet to feature a Playboy Club franchise location on the property’s ground floor. It will feature a lounge bar, full-service dining room, game room and retail shop.
Expected to launch later this year, the Cachet Boutique New York will host amenities including personal wellness facilities, an open-air Zen garden and outdoor spa. With a central location in the hotel, the Great Lawn will be a 2,000-sq.-ft. indoor/outdoor wine bar, meeting and event space with fire pits. The property will also have an on-site restaurant, Eden.
The new Cachet Boutique New York will be located on West 42nd St., near Theatre Row and in walking distance to Times Square.
The Carlton Group was the broker on the transaction.