Kushner’s $65M Lower East Side hotel deal hits snag
Family firm demands $2.2M deposit back, says the seller did not fulfill contractual obligations
Kushner Companies’ $65 million purchase of the Hotel on Rivington is on the rocks, according to documents filed in New York Supreme Court Tuesday morning.
Kushner Companies is demanding that sellers Paul and Rena Stallings give back the $2.2 million deposit on Hotel on Rivington because of an alleged breach of the purchase agreement.
A company spokesperson stated that Kushner Companies is under contract and has not closed due to the seller’s inability to fulfill all of his contractual obligations. Further details were not immediately available.
The deal for the 108-room glassy minimalist hotel at 107 Rivington was struck in October, and the hotel, which lists rooms for $191 per night and boasts views of Lower Manhattan, would have been the family firm’s first foray into the New York hotel market.
The building is in need of renovations and had a record number of noise complaints, according to city records. The deal was also to include a small café adjoined to the hotel, currently leased by Juice Press. The New York Post reported last year that Joshua Kushner made the decision to purchase the hotel.
The Hotel on Rivington, which was developed in 2003 at a cost of $32 million, is also embroiled in an ongoing class-action lawsuit for unpaid wages from 2016, alleging that the hotel did not pay mandatory service charges and wages to its banquet workers.
Stallings could not be immediately reached for comment.
Correction: An earlier version of this story, citing an appendix attached to the lawsuit, stated that the price of the hotel was approximately $16 million. Kushner Companies later said the deal was for roughly $65 million.