Co-living firm to embark on Hudson Hotel redevelopment
CSC Coliving spearheading 438-unit project
The future of Midtown’s Hudson Hotel is coming into focus.
CSC Coliving, a firm that provides affordable housing to young residents, is spearheading the redevelopment of the shuttered hotel at 356 West 58th Street, Crain’s reported. The co-living firm is planning to create 438 units at the 362,000-square-foot building.
It was reported in May that an undisclosed buyer picked up the property for $207 million. The seller was Eldridge Industries, which had appointed Cain International to lead a strategic repositioning of the aged hotel in 2020.
CSC is redeveloping the 24-story hotel, but it wasn’t the buyer. That distinction belongs to Montgomery Street Partners; CSC agreed to a contract, but flipped it to Montgomery to close the sale and secure financing. CSC then agreed to a 99-year lease with Montgomery to redevelop the property — financial terms of the lease were not disclosed.
The 866-key hotel closed at the beginning of the pandemic, sealing off a long legacy. It was built in 1929 as the American Women’s Association clubhouse, a residence for young women. About a decade later, it was converted into the Henry Hudson Hotel. In 1997, Morgans Hotel Group acquired the property and transformed it into Hudson New York Hotel.
In 2014, Morgans Hotel Group was reportedly considering marketing the property, hoping to reel in $440 million. A sale never transpired, though, and the hotel was part of a $425 million refinancing deal in 2017, months after SBE and partners Yucaipa and Cain Hoy closed on an $800 million acquisition of Morgans Hotel Group.
Eldridge ultimately purchased the hotel from SBE in 2020.
Duval and Stachenfeld LLP negotiated the lease agreement on behalf of Montgomery. A broker from Parkview Financial, one of the lenders, previously said the developer was looking at smaller unit sizes in order to market units at a 20 percent discount compared to other nearby options.
CSC boasts investments in more than 10,000 properties across the United States and Mexico. The Manhattan-based firm identifies assets for potential affordable housing opportunities for renters, then provides investment capital for coliving projects.
The company’s featured properties include the 16-unit Lafayette House in Bedford-Stuyvesant and The Callery on the Upper East Side.
— Holden Walter-Warner