Essex House falls into special servicing

September 12, 2012 03:30PM

The Jumeriah Essex House, a 509-room hotel on Central Park South, fell into special servicing over the weekend, Crain’s reported. The owner, the Dubai Investment Group, which had reached an agreement to sell the asset, may be able to catch up on payments for the loan, which is estimated to be for between $180 and $186 million, according to Crain’s.

Last month, Strategic Hotels & Resorts agreed to purchase the hotel for $362.3 million, Crain’s said; the sale was due to close on Friday. It appears that Strategic received an extension, which may have caused Dubai Investment to default. The intended buyer has already reached a 50-year agreement with Marriott International to re-brand the hotel as JW Marriott Essex House, with Marriott International as the manager.

“We are working diligently to close the purchase of this iconic hotel and appreciate the extension considering the tight timeframe involved,” Laurence Geller, president Strategic, said in a statement, according to Crain’s. “Our goal is to secure the right alternatives to fund the remaining capital requirements.” [Crain’s] — Guelda Voien