David Lichtenstein’s Lightstone Group is planning to build a new, approximately 300-key hotel in the East Village, with Marriott International’s Moxy Hotels serving as the brand, several sources told The Real Deal.
The firm is drafting plans for an 85,000-square-foot building on the site, which extends from 112 to 120 East 11th Street, between Third and Fourth avenues, the sources said.
The project is slated to rise on a site that holds a portion of the six-building multifamily portfolio that Lightstone acquired in April for $127 million from Pan Am Equities. That deal closed with an $85 million acquisition loan from Goldman Sachs.
One of those buildings, 85 East 10th Street — which represented $75.4 million of the total purchase price — is not going to be part of the project. In fact, Lightstone wants to sell it, and hired a team from Meridian Capital Group to bring the 121-unit, 69,100-square-foot rental building to market.
Lightstone is among the city’s most active developers, with projects spread around the city, including Manhattan, Queens and Brooklyn.The firm is working closely with Moxy, the new Marriott brand which is targeting millennials with lower prices and a youthful vibe.
In early 2015, the company said it expected to spend $1 billion to develop four Moxy hotels in Manhattan, one in Brooklyn, and one in Los Angeles. Lightstone will spend another $1 billion on other Moxy projects around the country.
Lightstone did not immediately respond to a request for comment.