Alexico looks to Goldman to rescue the Mark

TRD New York /
Aug.August 26, 2010 09:30 AM

The Mark Hotel

The Alexico Group has reached out to Goldman Sachs for financing to buy back its mortgage debt on its Upper East Side co-op conversion at the Mark Hotel in an effort to pull the struggling property back above water, according to the Wall Street Journal. Alexico, which owes Anglo Irish Bank roughly $270 million, entered talks with Dune Real Estate Partners earlier this year about how it might restructure the loan, and the partnership is now negotiating with Goldman. Sales have been slow at the 83-year-old property at 25 East 77th Street, where prices range from $2 million to $60 million but just two units have sold thus far for a total of $15.7 million. Alexico’s original plan was to convert 42 of the hotel’s 160 units to luxury co-ops, through which it hoped to raise $308 million. The developer later scaled back the conversion to just 10 units, which were supposed to raise a combined $167 million, due to a lack of interest. Sources said Anglo Irish would be willing to accept an offer below $200 million to purge the debt from its portfolio. The lender also sold around $230 million in loans on Alexico’s Alex Hotel and Flatotel this year for roughly $180 million. [WSJ]


Related Articles

Donald Trump and the Trump Hotel in Washington D.C. (Credit: Getty Images)

Deadline is set for bids on Trump’s DC hotel

Renderings of 450 11th Avenue and 350 West 39th Street (Credit: DSM Design Group and Gene Kaufman Architect)

NYC’s strong hotel pipeline pushes down occupancy, revenue: report

Sam Chang and 150 West 48th Street (Credit: Google Maps)

Sam Chang lands $250M loan for Midtown hotel project

Alex Sapir and the NoMo Soho hotel at 9 Crosby Street (Credit: NoMo SoHo)

Sapir Corp.’s stock drops in Tel Aviv

181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel