Foreclosure filed on FiDi Holiday Inn

Troubled 50-story hotel at 99 Washington St. recently asked for $187M

New York /
Mar.March 25, 2022 03:36 PM

99 Washington Street (Google Maps, iStock)

UPDATED, March 28, 2022, 9:20 a.m.: Chinese developer Jubao Xie is facing the long descent from the top of the tallest Holiday Inn in the world.

Lending bank Wilmington Trust filed to foreclose on a $137 million loan on the 50-story hotel at 99 Washington Street in the Financial District, PincusCo reported. The 10-year, non-recourse, interest-only, fixed-rate loan at the 492-key hotel was provided four years ago, but the hotel has been in distress for some time.

Xie previously attempted to sell the hotel back in 2017, seeking more than $300 million. Earlier this year, Xie again attempted to sell both the hotel and the 8,500-square-foot St. George Tavern next door, hoping to get $187 million for the two properties. Eric Anton of Marcus & Millichap marketed the properties.

The hotel had been facing foreclosure for some time, as three loans connected to the property have been delinquent since August 2020, according to data from Trepp. By December 2020, the building was reportedly more than 90 days delinquent on $87 million, making it one of the most distressed hotels in the entire city.

Xie developed the hotel in tandem with Sam Chang before taking full control of the property in 2014. Crain’s reported the IHG-operated hotel had an occupancy rate of 90 percent when the 2018 refinancing occurred.

This is the latest sour development in New York City’s struggling hotel market. Earlier this month, one of the city’s largest hotels was sold at a nearly $400 million loss when MCR agreed to acquire the Sheraton New York Times Square from Host Hotels & Resorts for $356 million. The 1,780-key hotel last sold in 2006 for $738 million.

Elsewhere on the Holiday Inn market, Watermark Capital has been exploring a sale of the 226-key hotel at 125 West 26th Street in Chelsea. The investment firm purchased the building in 2013 from Magna Hospitality for $113 million.

The Chelsea Holiday Inn fell behind on its mortgage payments in October 2020 and the loan was transferred to a special servicer soon after. The hotel was only 54 percent occupied as of the fall and cash flow had turned negative.

A previous version of this article incorrectly named Ladder Capital as involved in the foreclosure. 

[PincusCo] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    CHIP executive director Jay Martin (LinkedIn, iStock / Photo illustration by Priyanka Modi)
    Landlords called it: Vacancy rate jumps, rent-stabilization stays
    Landlords called it: Vacancy rate jumps, rent-stabilization stays
    331 Elmora Avenue and 103 Ryan Street (Kislak Realty)
    Tri-state deal roundup: Multifamily, industrial still hot
    Tri-state deal roundup: Multifamily, industrial still hot
    From left: Vice Media CEO Nancy Dubuc, Rudin’s CEO and co-chairman Bill Rudin, and Dock 72 (Getty Images, S9 Architecture, Rudin Management, iStock)
    Vice scraps move to Rudin’s Dock 72
    Vice scraps move to Rudin’s Dock 72
    From left: Metro Loft Management founder Nathan Berman, Silverstein Properties chairman Larry Silverstein, and 55 Broad Street (Metro Loft, Silverstein Properties, LoopNet)
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    1552-1560 Broadway and Wharton Properties’ Jeff Sutton (Google Maps)
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Burberry's Jonathan Akeroyd with 11 West 42nd Street (Getty, Google Maps, iStock)
    Burberry sews up deal at Tishman Speyer building
    Burberry sews up deal at Tishman Speyer building
    Adam Leitman Bailey, Y. David Scharf, and Miki Naftali with 215 West 84th Street (Adam Leitman Bailey, Morrison Cohen, Getty)
    Naftali lays out project as holdout tenant plays new card
    Naftali lays out project as holdout tenant plays new card
    Taconic Partners' Matthew Weir and Hudson Research Center 61 at 9 West 54th Street (iStock, Taconic Partners, Hudson Research Center)
    RPI signs at Taconic and Silverstein’s life sciences hub
    RPI signs at Taconic and Silverstein’s life sciences hub
    arrow_forward_ios

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

    Loading...