Boutique hotel brand King & Grove has acquired the remaining 50 percent stake in an Astor Place hotel project from former partner the Chetrit Group in a deal that values the property at almost $96.6 million. The acquisition further solidifies the breakup of a partnership that had planned to launch thousands of hotel rooms in New York City and Miami.
Chetrit had planned to convert the 127,064-square-foot building, at 708 Broadway between East 4th Street and Washington Place, into a 249-unit, Gene Kaufman-designed hotel in partnership with King & Grove, Department of Buildings records show. But King & Grove, led by Ed Scheetz, now looks to be moving forward with the project solo.
The move comes months after Chetrit and King & Grove decided to split up their hotel portfolio in the midst of internal disputes over the renovation of the Hotel Chelsea. Chetrit and its partner, David Bistricer’s Clipper Equity, inked a deal to offload the historic hotel at 222 West 23rd Street to King & Grove, a minority partner, last year.
Chetrit did not respond to a request for comment. A spokesperson for Scheetz confirmed the deal but declined to comment further.
Chetrit had owned the property since 2005, when it purchased it for $39.5 million from a group of private investors, according to public records. The building, currently an office tower, appears to be largely vacant aside from its 15,000-square-foot retail space, which is leased by the gym Crunch. The group had also planned to add a one-floor addition to the 11-story property.
Chetrit has been in selling mode in recent months following the company’s $1.1 billion acquisition of the Sony building at 550 Madison in January. The company is currently in contract to sell an office building at 396 Broadway in Tribeca to an executive of investment firm Bridgeton Holdings, for $42 million, TRD previously reported.
In Miami, the firm recently sold the 289-room Versailles hotel and condominium to Argentine developer Alan Faena for an undisclosed amount.