Isaac and Eli Chetrit bought out Highgate’s stake in the Stewart Hotel as they plan to convert it to apartments, according to a source familiar with the matter.
The buyout will allow the Chetrits and Ray Yadidi’s Sioni Group to move forward with their plans to convert the aging hotel across the street from Madison Square Garden into 625 residential units, the source said.
Highgate, Sioni Group and Isaac Chetrit’s Patriarch Equities acquired the then four-star hotel for $217.5 million in 2016 and secured a loan from Blackstone for $158.8 million. Tao Group later acquired a stake in the hotel. The developers closed the establishment in 2022 and entered into a contract with the city for its use as a migrant shelter.
The building can be turned into a residential property as-of-right, meaning without new zoning.
The hotel, at West 31st Street, was built in 1929 as the Hotel Governor Clinton, named for New York state’s first governor, George Clinton.
Isaac and Eli Chetrit are cousins of New York real estate titan Joseph Chetrit, The lesser-known Chetrits are seeking to build a 69-story tower in the Garment District. They commonly partner with Jack and Ray Yadidi.
Highgate emerged as one of the most active buyers of New York City hotels in the late 2010s. Recently, the firm has run into trouble at a few of its properties. Highgate along with other investors are seeking to sell the massive Row Hotel in Manhattan after a series of defaults. Earlier this year, Highgate missed a payment on a $250 million loan on the Hyatt Regency Downtown SOMA in San Francisco.