NoMad Hotel to hit the auction block

Property had shown no outward signs of distress

New York /
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


Related Articles

arrow_forward_ios
From left: Adam Neumann and Marc Andreessen (Getty Images)
Adam Neumann raises $350M from a16Z for multifamily venture
Adam Neumann raises $350M from a16Z for multifamily venture
427 Broadway and Robert Frey (HGetty, THCNYC)
Former Vegas club owner bringing cannabis museum to SoHo
Former Vegas club owner bringing cannabis museum to SoHo
Mayor of New York City Eric Adams (Photo Illustration by The Real Deal with Getty Images)
NYC turns back to hotels to grow homeless shelters
NYC turns back to hotels to grow homeless shelters
Leonard Stern with Wyndham Garden Hotel Newark Airport (Getty, Hotels Combined)
Hartz buys Newark Airport hotel for $34M, plans demolition
Hartz buys Newark Airport hotel for $34M, plans demolition
Brookfield Property Partners CEO Brian Kingston and 660 Fifth Avenue (Brookfield Properties, Getty Images)
Major asset manager moves to 660 Fifth Avenue
Major asset manager moves to 660 Fifth Avenue
Cushman's Gary Gabriel and Adam Spies with one of the Long Island Industrial Assets (Cushman, Sherwood Equities, Getty Images)
Silverman grabs Sherwood industrial portfolio for $76M
Silverman grabs Sherwood industrial portfolio for $76M
50 Pennsylvania Avenue (LinkedIn, Pennrose)
Supermarket nabs 20K sf at Pennrose project in Brooklyn
Supermarket nabs 20K sf at Pennrose project in Brooklyn
Billionaire entrepreneur Mark Cuban (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Mark Cuban: Metaverse real estate is the “dumbest sh*t ever”
Mark Cuban: Metaverse real estate is the “dumbest sh*t ever”
arrow_forward_ios

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

Loading...