Party boy hotelier Vikram Chatwal’s Time Hotel hits foreclosure auction block

New York /
Sep.September 26, 2013 04:44 PM

The ground lease for the Time Hotel, the 192-room boutique Theater District property formerly owned by playboy hotelier Vikram Chatwal, is set to hit the foreclosure auction block, now that discussions between the young billionaire’s Hampshire Hotels and special servicer LNR Partners have collapsed.

Hampshire owes nearly $55 million to lenders for the property, at 224 West 49th Street, according to data from PropertyShark. A foreclosure judgment was issued against Hampshire in July.

Hampshire will bid on the property at the auction to try to retain ownership, said Jay Stein, CEO of the hospitality company. The hotel is known as a celebrity hotspot and has hosted models like Naomi Campbell and Kate Moss.

“We tried to negotiate with [LNR] but they have to do a public auction to ensure they’re getting the most they can get [for the asset,]” Stein said of the special servicer.

The auction will take place October 23 at 60 Centre Street, according to PropertyShark. An attorney for LNR was not immediately available for comment.

Hampshire took out a $43.1 million mortgage against the property from Lehman Brothers in 2005 and then another $11.9 million gap loan shortly after. The loans were later combined into one major loan and were transferred to LaSalle National Bank. The borrowers first defaulted on the debt in November 2009 and then reached a forbearance agreement that lasted until November 2011.

Hampshire struggled to meet the loan payments thanks to increasing competition in the market from new hotels like the W NY Times Square, it was previously reported.

The company had better luck with its Dream Hotel at 210 West 55th Street. In March, Ladder Capital, the commercial real estate finance company, provided $100 million to refinance the formerly distressed property.

Meanwhile, Chatwal’s personal life has featured heavily in the press in recent months. The 41-year-old recently became engaged to Spanish supermodel Esther Canadas and was busted on a drugs charge in Florida in April.


Related Articles

arrow_forward_ios
99 Washington Street in Manhattan NYC (TripAdvisor)
Troubled FiDi Holiday Inn asking $187M
Troubled FiDi Holiday Inn asking $187M
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Thompson Austin at 506 San Jacinto Boulevard, Austin, Texas (Hyatt)
Don’t call it a comeback: Austin hotels rebound but building never slowed
Don’t call it a comeback: Austin hotels rebound but building never slowed
Michael Medzigian, chairman and managing partner, Watermark Capital Partners (Watermark Capital Partners, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Ben Hakimian, founder, Hakimian Organization; 244 West 49th Street (Google Maps, KSU)
Hakimian changes Midtown hotel plans to residential
Hakimian changes Midtown hotel plans to residential
Ben Hakimian and Naveen Shah of Navika Capital Group (Navika Group of Companies, LoopNet, iStock, KSU)
Hakimian sells hotel at 75 Wall Street
Hakimian sells hotel at 75 Wall Street
The home to th Oriental Mandarin Hotel at Columbus Circle (Google)
Mandarin Oriental NY majority stake sells for $98M
Mandarin Oriental NY majority stake sells for $98M
Midtown DoubleTree sells at staggering loss
Midtown DoubleTree sells at staggering loss
Midtown DoubleTree sells at staggering loss
arrow_forward_ios

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

Loading...