Sapir buys Mondrian Soho for $200M at foreclosure auction

Lender foreclosed on trendy hotel in January 2013

New York /
Jan.January 07, 2015 04:16 PM

The Sapir Organization’s Alex Sapir agreed to pay $200 million for the hot but financially embattled Mondrian Soho at a foreclosure auction today.

Sapir bought the 270-room hotel, located at 9 Crosby Street, at an auction that lasted less than half an hour. “Nobody else qualified to bid,” said Robert Weigel, an attorney representing lender German American Capital Corporation, which launched foreclosure proceedings last year.

In July, a court ruled in favor of the lender, and said developer Sochin Downtown Realty owed German American $250.5 million, plus $84,000 each day after August 18.

German American, meanwhile, negotiated a backroom deal to sell the hotel to a group including Sapir, Rotem Rosen and Gerard Guez, founder and owner of worldwide hotspot Buddha Bar.

In October, Morgans Hotel Group, which has managed the hotel since 2011, filed a lawsuit to keep the hotel in its portfolio. Morgans, which argued it would be owed $110 million in fees if the agreement wasn’t honored, also said German American rebuffed its efforts to buy the hotel.

Today’s auction was packed and included representatives from Morgans. But, said Weigel, “Nobody else showed up with a check.”

 

Related Articles

arrow_forward_ios
From left: Rotem Rosen, Zina Sapir, Tamir Sapir, Bella Sapir, Elena Sapir, and Alex Sapir (Credit: Getty Images)
Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
Sapir Corp. posts $7M loss in first quarter of 2019
Sapir Corp. posts $7M loss in first quarter
of 2019
Sapir Corp. posts $7M loss in first quarter
of 2019
Alex Sapir borrows from father’s estate to pay off Israeli bonds
Alex Sapir borrows from father’s estate to pay off Israeli bonds
Alex Sapir borrows from father’s estate to pay off Israeli bonds
Just-sold Shelter Island hotel borrows $17M for transformation
Just-sold Shelter Island hotel borrows $17M for transformation
Just-sold Shelter Island hotel borrows $17M for transformation
Ty Warner and Four Seasons 57 East 57th Street (Getty, Google Maps)
Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
Children’s Fund moves to foreclose on Ceruzzi’s UES condo project
Children’s Fund moves to foreclose on Ceruzzi’s UES condo project
Children’s Fund moves to foreclose on Ceruzzi’s UES condo project
 The Ocean Surf Resort at 84 S Emerson Avenue and Sands Motel at 71 South Emerson Avenue (Photos via Nest Seekers)
Two Montauk hotels hit the market asking combined $71M
Two Montauk hotels hit the market asking combined $71M
The plaintiff invested $1 million in exchange for a portfolio of hotels - but never received his part of the agreement (Getty)
Urban Commons defrauded investor out of $1M in hotel venture: lawsuit
Urban Commons defrauded investor out of $1M in hotel venture: lawsuit
arrow_forward_ios

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

Loading...