The owner of Moxy Hotel in the Financial District has handed the keys back to its lender.
Led by Mark Gordon, Bill Brodsky and Elliott Ingerman, Tribeca Associates, which opened the 30-story hotel at 143 Fulton Street in 2018, transferred the ground lease to AllianceBernstein, according to public records. The lease was valued at $108.8 million in the transaction.
Tribeca Associates did not immediately respond to email requests seeking comment. AllianceBernstein declined to comment.
Tribeca acquired the ground lease of the site, which also uses the address 26 Ann Street, for $54.1 million in 2015, records show.
When construction was completed and the hotel was about to open, Tribeca Associates landed a $105 million loan from AllianceBernstein. That replaced a $61 million construction loan from Bank of the Ozarks, now known as Bank OZK, and provided the owner with a $44 million gap mortgage.
The hotel, known as Moxy NYC Downtown, was the second of the Marriott-affiliated Moxy brand to open in New York City, following Lightstone Group’s Times Square location. The brand, which aims to attract a younger clientele, now has four hotels — including Chelsea and East Village sites — in the city.
The 298-room Moxy NYC Downtown is hardly the only hotel to return a property to a lender during the pandemic.
The owner of the Hilton Hotel in Times Square, for example, surrendered the property to one of its mortgage holders in January.
In March, Mack Real Estate — as an $85 million mezzanine loan lender — gained control of a seven-hotel portfolio through UCC foreclosure proceedings against the owners of the Manhattan properties, a joint venture between Hersha Hospitality Trust and Chinese investment firm Cindat Capital Management.
And last month, Yellowstone Real Estate Investments bought the leasehold of the 600-room Watson Hotel at 440 West 57th Street, along with the mortgage backed by the property, for $175 million. Lender HSBC shopped the loan around after Watson’s owner BD Hotels defaulted last year.