The Real Deal New York

Six Senses to open hotel at HFZ’s High Line project

Firm taking 50% stake in hotel portion, valued at $260M

October 06, 2016 09:08AM

Rendering of the Eleventh located along the High Line (Credit: Big-Bjarke Ingels Group)

Rendering of the “Eleventh,” located along the High Line (Credit: Bjarke Ingels Group via WSJ)

Six Senses Hotels Resorts Spas plans to open its first U.S. location in HFZ Capital Group’s High Line project.

The Bangkok-based company will open a 137-key luxury hotel at 76 11th Street — the Bjarke Ingels-designed project along the High Line now known as “The Eleventh,” the Wall Street Journal reported. The project consists of two towers, one that will rise 300 feet tall and the other 400 feet. The Six Senses hotel will occupy the third through 11th floors of the eastern tower, the newspaper reports.

The development will also have 240 condo units and 90,000 square feet of retail space, the Wall Street Journal reported (the offering plan filed in August cited 302 condo units). Six Senses has also leased space at a five-story commercial building at 17th Street and 11th Avenue where it will open its membership club.

The hotel company will also take a 50 percent stake in the hotel portion of the project, which is valued at $260 million. Six Senses’s owner, Pegasus Capital Advisors LP, estimates that the rooms will go for an average $900 a night.

In December, The Real Deal reported that Ziel Feldman’s HFZ TRData LogoTINY had scrapped plans for a hotel on the lower levels of the $1.9 billion mixed-use project, opting instead to fill out the space with office. It’s not clear why or when the plans switched back to include a hotel.

HFZ scored $1 billion in financing to acquire the development site last year, paying a sky-high $1,100 a square foot for dirt. HFZ is looking for up to $250 million in EB-5 funds, but still has yet to obtain a construction loan for the project.

As The Real Deal previously reported, the firm is targeting between $3,800 and $4,000 per-square-foot for the condo units, an unprecedent number for the area.  [WSJ] — Kathryn Brenzel

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