Once-stalled boutique hotel back on track

English private equity firms buys 31st Street site for $13.5M

TRD New York /
Jun.June 20, 2012 06:30 PM

Plans for a new, 260-room hotel at 11 East 31st Street are back on track, thanks to a cash injection from a London and Hong Kong-based alternative investment firm, an investor in the project told The Real Deal today.

Cube Capital purchased the 2,156-square-foot site from Geolo Capital for $13.5 million earlier this month in partnership with developer Simon Development Group, according to public records filed with the city today. Minority investors in the deal include Eagle Point Hotel Partners and KSNY.

Commune, a joint partnership between Thompson Hotels and Joie De Vivre Hotels, will manage the 33-story, 260-room boutique hotel, which is slated to have a 125-seat restaurant and a rooftop bar.

Construction is slated to begin in early 2013, with the hotel opening in 2014 or early 2015, according to Simon.

Simon Development Group first assembled the site, which is made up of five separate lots, in 2007 through a joint venture with Area Property Partners. It later bought Area out of the deal for an undisclosed price, but the project stalled because of a lack of available construction financing.

One of the investors, Geolo Capital, then took control of the property from SDG in 2011.

Geolo then set about looking for an equity partners, explained Geolo CFO Michael Mayer, arranging a deal with the firm Cube Capital. Cube recently acquired the 394-room Royal Plaza Hotel in Lake Buena Vista, Fla.

At that point, Simon decided to re-invest in the project, said Jonathan Simon, the head of Simon Development Group.

“You don’t normally hear of that happening,” Simon said, “but we stuck with it.”

Commune was not immediately available for comment.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Sheldon Adelson and the Venetian (Getty, The Venetian Resort® Las Vegas)

Sheldon Adelson is leaving Las Vegas (maybe)

Sheldon Adelson is leaving Las Vegas (maybe)
Ray Kroc and his Santa Ynez Valley ranch (Wikimedia, Google Maps)

Huge California ranch owned by McDonald’s CEO Ray Kroc lists

Huge California ranch owned by McDonald’s CEO Ray Kroc lists
(Instagram/lilajdre; iStock)

Arizona agent who hurled racial slurs loses job

Arizona agent who hurled racial slurs loses job
(iStock)

Real estate stocks end week mixed as virus fears rise and markets fall

Real estate stocks end week mixed as virus fears rise and markets fall
CBRE CEO Bob Sulentic; the firm has shifted its global HQ from LA to Dallas. (CBRE, Getty)

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...