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New York

Eyal Ofer wants to flip Mondrian Park Ave hotel for more than $150M

Global Holdings Group took hotel over from Moin Development in July

Eyal Ofer’s Global Holdings to Sell Mondrian Park Avenue Hotel
Global Holdings' Eyal Ofer and 444 Park Avenue South (Getty, Global Holdings, Google Maps)

Eyal Ofer is looking for a quick flip at the swanky Mondrian Park Avenue hotel in Nomad and to bag more than $150 million.

The billionaire investor’s Global Holdings Group has put the 190-room hotel up for sale after taking over the property about two months ago from David Moinan’s Moin Development through a deed-in-lieu of foreclosure, The Real Deal has learned.

Global Holdings bought the $110 million mortgage on the property at 444 Park Avenue South in 2021 as the hotel was recovering from the pandemic shut-down. The two sides negotiated a settlement that allowed Moin to pay off a reduced balance by the end of June. But when the deadline passed, Global Holdings took hold of the deed.

One of the selling points now is that the property is not locked into a brand or management agreement and is not unionized, according to marketing materials from Newmark. A team led by Adam Spies and Doug Harmon has the listing.

Ofer’s company is aiming for pricing of about $700 to $800 per key, with a stabilized yield of 10 percent.

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A spokesperson for Global Holdings declined to comment.

The hotel hits the market as the city’s hospitality industry continues its recovery, thanks to the return of tourism and the city’s use of hotels as homeless and migrant shelters.

The average daily room rate for the first seven months of the year was $264, up about 8 percent from a year ago. The city’s hoteliers should also see a bump in demand from new restrictions on short-term rentals that went into effect last week.

There are about 4,100 short-term rental listings that could be affected, sending those customers to traditional hotel rooms, according to an analysis by the data firm AirDNA. The supply of hotel rooms is increasing, though, with more than 10,000 newly developed rooms scheduled to come online this year, and a number of shuttered hotels expected to reopen.

There are signs that the pipeline will start to fall off, as the flow of new building permits has been all but shut off since the city in 2021 required developers to get a special permit to build new projects.

Moin Development bought the former office building at 444 Park Avenue South in 2011 for $45 million, and partnered with Sam Nazarian’s SBE Entertainment Group on a $150 million conversion. Moinian bought Nazarian out just before the hotel opened in 2017.

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Global Holdings GroupEyal Ofer