US-based equity firm Iron Point Titan Ventures has bought $25m of mezzanine debt at a discount in W New York Downtown Hotel in the US.

Iron Point already owned a separate $40m portion of mezzanine debt in the hotel, which opened in August 2010.

Developer Joseph Moinian defaulted on the loan in October 2009 and was negotiating with the servicer to rework terms.

US-based loan advisory firm Mission Capital Advisors managed the sale, according to Bloomberg.

The hotel also owes $245m in first mortgage payments originated from Deutsche Postbank in March 2007.