Developer Aby Rosen and his longtime friend, hotelier Ian Schrager, are poised for a split at the Gramercy Park Hotel, which they bought together in 2003 and transformed into the haven for contemporary art and design it is today. According to the Wall Street Journal, Rosen is negotiating a deal in which he would buy back Union Labor Life Insurance’s $140 million loan on the 185-room property, which the partnership defaulted on this year, for roughly $90 million. He would also buy out Schrager’s stake, sources told the paper.
Meanwhile, Rosen could lose 66 East 55th Street, home to the Core Club, where he’s been in default on the building’s $18 million retail condominium loan since last year. The lender is soliciting bids on the loan, due Oct. 26, and has reportedly garnered the attention of several prominent real estate families who intend to take over the property.
But for all of Rosen’s debt woes, he’s not the only developer who stands to lose his New York City trophies as lenders increasingly sell debt on distressed property to investors.
A $25 million junior mortgage on Joseph Moinian’s new W New York Downtown hotel and condominium is also up for grabs, and a number of hotel buyers and private-equity funds are said to be ready to pounce. Bids are due Thursday. [WSJ]