Loans on Alexico-owned hotels hit market

June 08, 2010 12:15PM

Louise Sunshine and the Mark

Anglo Irish New York is quietly selling loans on three upscale
hotels owned by Alexico Group totaling $350 million
to $400 million, industry sources told Crain’s. It was
unclear if Alexico had defaulted on one or more of the loans
associated with the properties, which are the Mark Hotel on East 77th
Street,The Alex Hotel On East 45th Street and the Flatotel
on West 52nd Street. But sources familiar with the deal said the
prospective buyers were only interested in the mortgages because they
hoped to eventually foreclose on the company. Alexico, where industry veteran Louise Sunshine is director of development, recently
invested at least $100 million into renovating the 16-story Mark, hotel. It planned to convert some suites into private
residences that it would sell to pay off debt, but fell short of the
cash it needed and borrowed $255 million from Anglo Irish. The other
hotels don’t appear to have the same issues as the Mark. However,
Alexico has had problems with some of its residential developments
such as the Laurel condos
on the Upper East Side, where buyers have filed lawsuits to break
contracts. [Crain’s]