Tax bills show how much Covid devalued NYC real estate
The owners of the trendy, 128-room Bryant Park Hotel are struggling to keep up with payments on their $89 million mortgage, according to the Wall Street Journal. Data from Realpoint LLC shows that the owners — investor Philip Pilevsky, Century 21 discount retail stores owner Raymond Gindi and Rainbow Shops owner Joseph Chehebar — were late on their March payment as a result of insufficient cash flow. They have since made the payment, and the loan is now current, but industry experts say the 40 West 40th Street hotel, converted from an office building in 2001, hasn’t been as successful as its creators originally anticipated. Though it is frequented by stars from the film, music and fashion industries — Madonna and Rihanna among them — net cash flow fell to $4.6 million in the year that ended in September 2010, down from $7 million in 2008. “The location has gotten better with Bank of America Tower, Bryant Park, Fashion Week and other potential developments in the pipeline,” said hotelier Ian Schrager. “But I don’t believe the hotel ever lived up to expectations.” [WSJ]
