Gansevoort Park Avenue could soon be hitting the market

Owners of trendy NoMad hotel are exploring buyout, sale: sources

TRD New York /
Jul.July 18, 2017 02:10 PM

From left: Gansevoort’s Michael Achenbaum, Centurion’s Ralph Tawil and the Gansevoort Park Avenue (Credit: Getty Images and Gansevoort Hotel Group)

One of New York City’s two Gansevoort-branded hotels may soon be hitting the market.

The Tawil family’s Centurion Realty is negotiating a plan with its partners to Sell The Trendy Boutique Hotel Gansevoort Park Avenue NYC in NoMad, sources told The Real Deal.

Sources familiar with the property said the Tawils recently exercised a buy-sell option to its partner, the Achenbaum family of the Gansevoort Hotel Group. The move is intended to either prompt the buyout of the Achenbaums’ stake or the partners’ jointly shopping the property’s full ownership.

A source familiar with the ownership’s equity breakdown said the Achenbaums and the Tawils each have a 45.05 percent stake, while Jeffrey Levine’s Douglaston Development has a 9.9 percent interest and is part of the Achenbaums’ ownership group.

The 19-story, 249-key hotel at 420 Park Avenue South, at the corner of East 29th Street, opened in 2010. The 214,000-square-foot property, which cost $239 million to build, secured a $160 million refinancing from Citigroup and Redwood Trust in 2012.

Sources familiar with the hotel said it could fetch about $800 per key, or roughly $200 million – a drop in value from when the hotel market was healthier a few years ago. The owners previously considered selling the hotel, sources said, with pricing around $1.1 million per key, or about $275 million.

In addition to the Gansevoort Park Avenue NYC and the Gansevoort Meatpacking NYC, which opened in 2004, the Gansevoort brand includes hotels in the Dominican Republic and Turks and Caicos. Michael Achenbaum, president of Gansevoort Hotel Group, opened a new luxury hotel called the Curtain in May, his first European property.

A spokesperson for the Gansevoort Hotel Group said, “We are not interested in selling,” and declined to comment further.
Representatives for Centurion and Douglaston declined to comment.

Earlier this year, the Achenbaums scored a $115 million refinancing for the Gansevoort Meatpacking at 18 Ninth Avenue.  Elsewhere in the area, the Standard High Line in the Meatpacking District hit the market for sale in May.

The few Manhattan hotels to sell recently have been as conversion opportunities rather than value-add. The Kash Group and Shel Capital are planning a rental conversion of the Morgans Hotel in Murray Hill  and the LeFrak Organization is planning the same for the Dumont hotel in Kips Bay.


Related Articles

arrow_forward_ios
An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

arrow_forward_ios