The project, known as The Torch, is rising at 740 Eighth Avenue and is planned to reach about 60 stories with roughly 1,800 hotel rooms.
The financing includes a $1.1 billion senior construction loan led by JPMorgan plus another $150 million in mezzanine financing.
The tower is already around 40 stories high and is expected to include restaurants, retail, observation areas and a dramatic 250 foot drop ride overlooking Manhattan.
For Barnett, it is another giant bet on New York real estate and one of the biggest construction financings currently moving through Times Square.