Reuben Brothers pick up Surrey Hotel at a discount

Leaseholder filed for involuntary bankruptcy after hotel operator missed payments

New York /
Dec.December 04, 2020 09:45 AM
Simon and David Reuben with 20 East 76th Street (Getty; Google Maps)

Simon and David Reuben with 20 East 76th Street (Getty; Google Maps)

British billionaires David and Simon Reuben are getting a bargain on a New York City hotel.

Reuben Brothers, the investors’ private equity firm, is purchasing the Surrey Hotel at 20 East 76th Street for less than its $215 million asking price, Bloomberg reported. The ritzy hotel filed for involuntary bankruptcy earlier this year, when Ashkenazy Acquisitions, the ground lease holder, filed for Chapter 11 after the hotel operator missed payments.

At the time, lawyers for Ashkenazy accused the operator of seeking to “take advantage of a worldwide crisis as a means to take back the valuable ground lease.” The bankruptcy trustee for the hotel terminated Ashkenazy’s leasehold in August.

The purchase is the latest push into U.S. real estate by the Reubens. The pair just finished a round of hospitality financing, purchasing stakes in three hotels in Chicago, Miami and Las Vegas. In 2015, they bought the Sahara Group’s debt on the Plaza and Dream hotels in New York and London’s Grosvenor House for $800 million.

Earlier this year, the Reubens purchased a retail condo from SL Green for $170 million, as the real estate investment trust sought to beef up its cash reserves.

[Bloomberg] — Georgia Kromrei


Related Articles

arrow_forward_ios
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
Blackstone's Stephen Schwarzman with MGM Grand Las Vegas and Mandalay Bay in Las Vegas (Getty)
Blackstone sells MGM Grand, Mandalay Bay stakes
Blackstone sells MGM Grand, Mandalay Bay stakes
Holiday Inn at 99 Washington Street (Google Maps, Getty)
Facing foreclosure, world’s tallest Holiday Inn files for bankruptcy
Facing foreclosure, world’s tallest Holiday Inn files for bankruptcy
Hyatt CEO Mark Hoplamazian and Dream Hotel Group founder Sant Singh Chatwal with 355 West 16th Street in Manhattan NYC (Hyatt, Dream Hotel)
Hyatt to acquire Dream Hotel Group for up to $300M
Hyatt to acquire Dream Hotel Group for up to $300M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
arrow_forward_ios

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

Loading...