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New York

Lehman Brothers estate takes control of the On the Ave hotel

The estate of Lehman Brothers Holdings has taken control of the 169,664-square-foot On the Ave Hotel at 2170-2178 Broadway at 77th Street for $191 million, a spokesperson for the estate confirmed. “The strategy of the estate has been to maximize the value of its properties — not to fire sale them,” she said.

According to Real Estate Weekly, Lehman has been involved with the property for at least a decade, having had a $31.7 million mortgage in 1997 with a previous owner. The estate’s path to obtaining control was not immediately clear. There was no recent lis pendens filed against the building, according to PropertyShark.com’s records, but the sale may have been a deed in lieu of foreclosure.

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Trimont Real Estate Advisors represented Lehman in the transaction.

The previous owner, Ota Hotel Owner LP, controlled by Texas-based Highgate Holdings, purchased the building for $201 million in 2007. [Real Estate Weekly]

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HighgateLehman Brothers