DPW Holdings’ Investment in Tribeca Hotel Secures $85 Million Construction Loan Commitment
October 15 2018 - 6:30AM
DPW Holdings, Inc. (NYSE American: DPW), a diversified holding
company (“DPW”), announced that a group which includes DPW as an
investor secured an $85 million construction loan commitment from a
New York City-based multinational investment bank for the
construction of a five-star ultra-luxury hotel in Tribeca (the
“Hotel”). and led by two New York real estate development
companies, Mactaggart Family & Partners LP and Caspi
Development, As announced on May 25, 2018, DPW Holdings acquired a
minority position in the investment.
“DPW seeks assets with unique attributes and significant
promise,” said Milton “Todd” Ault III, DPW’s CEO and Chairman.
“With strong luxury hospitality fundamentals and specific location
advantages the Hotel is positioned to capitalize on the exploding
business and residential growth of Lower Manhattan. This loan
commitment from a prestigious bank validates our opportunity and
keeps the Hotel on track to be completed in the summer of 2020. The
anchor of DPW’s hospitality portfolio, the Hotel is expected to
deliver long-term predictable cash-flow.”
The Tribeca Hotel The 94,000 square foot
hotel, located one block east of the Hudson River in the heart of
the Tribeca North Historic District, will feature 96 opulently
appointed rooms and suites, a lavish full-service spa and six
first-class food and beverage venues, all exclusively designed by
renowned designers Martin Brudnizki Design
Studio and Stephen B. Jacobs Group. A 106-year, premier
hospitality group among the largest operators of 5-star luxury
hotels and casinos in Europe will share its flagship hotel’s name,
sophistication and exclusive service. The group is expected to be
revealed as part of a branding effort that will commence in the
spring of 2019. A record-number Michelin star restaurateur is also
contracted to oversee dining in the Hotel, including the New York
manifestation of an iconic European institution in operation since
the 1800s. AECOM Tishman Construction Corp. broke ground in
December 2017 and expects to open the 96-room hotel during the fall
of 2020, with the opening of the restaurants anticipated to be
immediately thereafter. For more information regarding the hotel
project, please use this link where a live video feed is also
featured streaming during the
day, https://DPWHoldings.com/456luxhotelnyc/.
DPW Investment To maximize long-term
predictable cash flow, DPW intends to invest pari passu with
top-tier New York City real estate investors. Based on a
projected average daily rate (ADR) of $983 upon stabilization in
2021 (as compared to the competitive set’s May 2016 ADR of $1,060),
the Hotel is expected to produce a stable, unlevered yield on cost
of 10%. A refinancing, three years after opening, is projected to
return 50% of the invested equity and should generate cash-on-cash
returns of 18% thereafter.
Partners London-based Mactaggart Family &
Partners, LP has been operating in New York City since 1985. Its
experience spans over 35 years of high-end office and residential
development including 589 Fifth Avenue, 590 Fifth Avenue, 183
Madison Avenue, and 576 Fifth Avenue.
Family-run Caspi Development represents decades of real estate
pedigree, which along with a comprehensive hands-on approach, has
led to an unparalleled reputation for perfection in design,
construction and project completion. With a track record of both
metropolitan and suburban achievements, Caspi thrives in the
competitive Westchester and New York City landscapes. Bringing
three generations of experience to the table, Caspi taps into its
knowledgeable site selection and financial entrepreneurship to
succeed in a variety of markets.
About DPW Holdings, Inc.DPW Holdings, Inc. is a
diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through its wholly owned subsidiaries and strategic
investments, the company provides mission-critical products that
support a diverse range of industries, including defense/aerospace,
industrial, telecommunications, medical, crypto-mining, and
textiles. In addition, the company owns a select portfolio of
commercial hospitality properties and extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
DPW Holdings, Inc.’s headquarters is located at 201 Shipyard Way,
Suite E, Newport Beach, CA 92663; www.DPWHoldings.com
Forward-Looking Statements The foregoing
release contains “forward looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the
Company’s website at www.DPWHoldings.com.
Contacts:
Kirsten Chapman, LHA Investor Relations, 415.433.3777, dpwholdings@lhai.com
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