NoMad Hotel to hit the auction block

Property had shown no outward signs of distress

Apr.April 16, 2019 03:11 PM
From left: Sydell CEO Andrew Zobler, Colony Capital CEO Tom Barrackand, and 1170 Broadway (Credit: Getty Images and Wikipedia)

From left: Sydell CEO Andrew Zobler, Colony Capital CEO Tom Barrackand, and 1170 Broadway (Credit: Getty Images and Wikipedia)

New owners may soon be checking into the NoMad Hotel.

The hotel’s mezzanine lender, Colony Capital, initiated a UCC foreclosure auction on the 168-key luxury hotel, Commercial Observer reported. The hotel — owned by Andrew Zobler’s Sydell Group and Make It Nice — hasn’t shown any outward signs of of distress, according to the publication.

It opened in 2012, and was developed by GFI Development, a partnership between Allen Gross and Andrew Zobler at the time. The pair also partnered on the Ace Hotel at 20 West 29th Street. Following a legal dispute, GFI sold its interest in the NoMad Hotel.

At the time of their openings, the Ace and NoMad were the earliest high-concept hotels to arrive in the relatively neglected stretch of Broadway just north of Madison Square Park.

Lenders did not appear concerned about the property. Together with Colony’s $35 million mezzanine loan in November 2015, Bank of America provided a $105 million loan to refinance previous construction debt, as well as a $25 million gap mortgage.

JLL has been tapped to market property at 1170 Broadway at the corner of West 28th Street. The auction is set to take place on June 6, and the full ownership interest in the property will be sold off to the highest bidder.

The NoMad would not be the first hotel in the area to face setbacks recently. The Flatiron Hotel, a block south at 9 West 26th Street, fell into foreclosure last year due to a $22.5 million CMBS loan. [CO] — Kevin Sun

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