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Simon Baron, Quadrum refi Arlo NoMad hotel

Deal replaced debt developers landed from Cayman Island-based lender in 2015 to complete stalled project

From left: The Arlo Hotel at 11 East 31st Street, Matt Baron and Jonathan Simon
From left: The Arlo Hotel at 11 East 31st Street, Matt Baron and Jonathan Simon

Simon Baron Development and Quadrum Global refinanced their 250-key Arlo hotel in NoMad with $73.5 million from the asset management firm Barings, property records filed with the city Tuesday show.

The financing adds $39.5 million of new debt onto the property and replaces a $34 million balance from a loan Cybus Lending Corporation, a Cayman Islands-based lender, provided the owners in 2015.

Representatives from Simon Baron and Barings were not immediately available to comment.

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Simon Baron assembled the site for what would become the 31-story hotel at 11 East 31st Street beginning in 2007 for $27 million through a joint venture with AREA Property Partners. The project stalled out during the recession and, when it finally got back on track, hit another speed bump in 2015 when regulators shut down the project’s construction lender, the Puerto Rico-based Doral Bank.

London-based equity partner Quadrum stepped into the deal in 2012 to help recapitalize the project, which was set to operate under billionaire John Pritzker’s millennial-focused tommie hotels brand before the heir to the Hyatt Hotels empire scuttled the plans.

Quadrum opened the hotel late last year under the Arlo flag with their partners Simon Baron, Keith Schwebel of KSNY and the New York-based hotel investment company Eagle Point Hotel Partners.

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