The Real Deal New York

Westbrook is lending $96M on the Downtown hotel it just sold

LA firm Urban Commons bought The Wagner hotel for $147 million earlier this week
By Christian Bautista | October 05, 2018 04:45PM

2-10 West Street

Westbrook Partners is switching roles at the Wagner at the Battery, a hotel in Lower Manhattan.

The firm originated a $96 million mortgage for the hotel portion of 2-10 West Street, according to records filed with the city on Friday. The property is a 36-story tower across from Battery Park City. The hotel portion, which covers the bottom 12 floors of the building, contains 298 rooms. The upper floors, meanwhile, contain 120 condo units.

Westbrook, which owned the property in partnership with Millennium Partners, sold the hotel to Los Angeles firm Urban Commons earlier this week for $147.3 million.

Westbrook and Millennium Partners sold their stake in the hotel after being sued by the building’s condo residents. The dispute stems from the rebranding of the hotel, which was previously a Ritz Carlton. The hotel now operates under the Leading Hotels of the World brand. Residents sued over the name change, claiming that they promised proximity to a five-star hotel. In its response in court, the owners disparaged the lawsuit, dismissing it as due to “the petulance of multi-millionaire residents.”

The Wagner appears to be Urban Commons’ first acquisition in New York City. The firm, headed by Taylor Woods and Howard Wu, has a portfolio that includes the Ramada Hialeah Airport Hotel in Miami and the Renaissance Hotel in Denver, according to its website.

Urban Commons and Westbrook did not immediately respond to requests for comment.