Lombardy shareholders seek $150M+ for Plaza District hotel co-op

Slumping hotel market has owners looking to cash out

New York /
Apr.April 20, 2021 01:25 PM
The Lombardy Hotel at 111 East 56th Street (Google Maps)

The Lombardy Hotel at 111 East 56th Street (Google Maps)

A Gilded Age hotel once owned by William Randolph Hearst may get a fresh look in the new Roaring ’20s, now that the slumping hotel market has investors thinking about selling.

Shareholders in the Lombardy hotel co-op at 111 East 56th Street are looking to sell the property for north of $150 million, sources told The Real Deal.

The co-op shares are held by investors who sought to capitalize on the city’s booming tourism industry pre-Covid. But with the hospitality business still struggling to recover, owners are growing weary of covering the carrying costs of empty rooms and have banded together to sell all their shares, according to a person familiar with the listing.

A representative for the co-op shareholders could not be immediately reached for comment. The 192-unit property in the Plaza District is being marketed by Eastdil Secured, which declined to comment.

Marketing materials for the 22-story building just off of Park Avenue pitch it as a potential rental-to-for-sale conversion, a market that’s been constrained by the state’s 2019 rent laws limiting owners’ ability to convert rent-stabilized apartments.

“A lesson from the last cycle was that the first buildings to hit the market outperformed, as their only competition was stale inventory,” reads a teaser for the offering. Other potential uses include keeping the property as a hotel, running it as an extended-stay hotel or converting to a senior living facility.

The hotel was built in 1927 and purchased two years later for $4 million by Hearst, who was one of the largest property owners in the area. The building was converted into a co-op in 1957.





    Related Articles

    arrow_forward_ios
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Light i-sales precede heavy eating
    Light i-sales precede heavy eating
    Light i-sales precede heavy eating
    Clockwise from top left: 2875 Morningside Heights, 38-21 12th Street in Long Island City, 46 Nevins Street in Brooklyn (Google Maps)
    Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
    Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
    Investors continue to snatch up city’s multifamily, industrial assets
    Investors continue to snatch up city’s multifamily, industrial assets
    Investors continue to snatch up city’s multifamily, industrial assets
    CommonWealth Partners CEO Brett Munger and Hudson Commons at 441 Ninth Ave (CommonWealth, Hudson Commons)
    CommonWealth Partners buying Hudson Commons for more than $1B
    CommonWealth Partners buying Hudson Commons for more than $1B
    Village theater back on market after failed deal; 3 more warehouses sell
    Village theater back on market after failed deal; 3 more warehouses sell
    Village theater back on market after failed deal; 3 more warehouses sell
    Parking spaces, resi building trade at discounts
    Mid-market investors score parking garages, Queens apartments at discounts
    Mid-market investors score parking garages, Queens apartments at discounts
    Ben Ashkenazy dumps Midtown retail building at $6M loss
    Ben Ashkenazy dumps Midtown retail building at $6M loss
    Ben Ashkenazy dumps Midtown retail building at $6M loss
    arrow_forward_ios

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

    Loading...