The Real Deal New York

Israeli investors sell Hell’s Kitchen apartment hotel for $28M

U.S. Suite bought 96-unit property from Sam Chang in 2010 for $17.5M

April 24, 2015 11:39AM
By Rich Bockmann

Sholom Jacobs and 440 West 41st Street

Sholom Jacobs and 440 West 41st Street

U.S. Suite, a partnership of Israeli investors, has sold a 13-story Hell’s Kitchen apartment hotel known as Metro Apartments for nearly $28 million, according to property records filed with the city Friday.

The partnership includes principals from Aura Investments, Livorno Properties and U-Trend. 

Sholom Jacobs of the Nassau County-based Jacobs Real Estate Advisors was the buyer of the roughly 55,000-square-foot property at 440 West 41st Street.

U.S. Suite bought the 96-unit building that sits in the shadow of the Port Authority Bus Terminal from developer Sam Chang in 2010 for $17.5 million, a discount from the $21.5 million price tag the prolific hotelier paid for the property four years earlier.

At the time, Chang said he operated the property as an extended stay hotel, and did not take bookings for overnight stays.

The investors, however, began renting rooms for stays of fewer than 30 days, which is prohibited for this particular property’s zoning, as The Real Deal previously reported.

When reached for comment Jacobs declined to say what his plans are for the property.

About a year ago Ben Suky of U.S. Suite, who has close ties to Rabbi Yoshiyahu Pinto, filed plans to change the property’s legal use and increase the number of rooms to 115.