The Real Deal New York

Shuttered illegal hotel reopens as rentals

The CIM Group-owned building is now leasing

April 05, 2015 09:00AM

From left: 49 East 34th Street and Richard Ressler

From left: 49 East 34th Street and CIM Group co-founder Richard Ressler

In February, the state’s attorney general’s office closed a 36-story, illegal hotel owned by an affiliate of 432 Park co-developer CIM Group. Now, the former Midtown East condo tower has become legitimate rentals.

Located at 49 East 34th Street between Madison and Park avenues, the 110-unit building, which was supposedly a condo building, was actually functioning as a hotel, where $239 a night got you a studio and $359 a two-bedroom, according to Buzzbuzzhome.

Meanwhile, CIM Group had collected millions in 421a tax breaks.

But under an agreement with the state attorney general’s office, CIM will pay back the value of the tax breaks — roughly $4.4 million — to a city fund.

The building has now been dubbed Madison Park Tower and one-bedrooms are listed for $3,277 per month. The studio to two-bedroom residences feature oak floors, nine- to 11-foot ceilings and stainless steel appliances. [Buzzbuzzhome]Christopher Cameron

  • development follower

    Wasn’t the interior signage in this building done by Chris Rush?

  • Seereous

    Shouldn’t they also pay hotel taxes in arrears?