Stunning bankrupt New York hotel gets a second chance

Call it the phoenix of Greeley Square. The famous but empty and marred of construction Hotel Martinique will soon rise from...

Call it the phoenix of Greeley Square.

The famous but empty and marred of construction Hotel Martinique will soon rise from its ashes, thanks to a hard-earned lease purchase of the long-troubled Greeley Square property.

The previously bankrupt hotel will reopen in stages from December, although 12 to 18 months of mainly exterior work remains to come. It will again bear the name of Curio Collection by Hilton, the last flag it carried before the pandemic brought it to a halt.
The renaissance mirrors the growing fortunes of the Broadway Nomad area corridor south of 34th Street, where new Ritz-Carlton and Virgin hotels and trendy restaurants such as The Smith have replaced wholesalers and an ugly sidewalk bazaar.

“Turning the lights back on in Martinique will be a boost for Greeley Square and Herald Square,” said a trendy Midtown South observer.

The The rescue of Martinique was not easy. The buyer is surprisingly not a foreign investor, but a little-known Midwestern company – Oklahoma City-based developer Burnett Equity. Burnett closed the $ 55 million lease last week, sources have revealed. Burnett is primarily active in Oklahoma with commercial and residential projects. It is expected to inject up to an additional $ 60 million into Martinique’s stalled restoration project.

Two women sit at an outdoor table in Greeley Square
The Martinique hotel can capitalize on its proximity to the outdoor headquarters of Greeley Square as well as Macy’s.
Getty Images

The 1897 Martinique, located at 1260 Broadway at West 32nd Street, was considered the longest hotel in the city in continuous operation until it closed for the pandemic. At different times in its history, it was a luxury hotel, ORS, and more recently, a top destination for mid-market travelers.

We first reported the lease offer in March. Marcus & Millichap brokers Eric Anton and Nelson Lee were approached by the landowner, a private investor from Florida, in December 2020 to market the bankrupt lease, which was still 68 years old.

A rendering of the entire exterior height of the Hotel Martinique
Once completed, Hotel Martinique will offer restaurants and karaoke.
Nelson lee

The mortgage went into foreclosure after the tenant died at the end of 2020. Adding to the challenge, the 530-room property also had 34,000 square feet of retail space that was vacant, with the exception of a small branch of Chase Bank. The property’s emblematic status meant that the renovations had to be treated with gloves and that construction was years behind schedule.

But the most difficult hurdle a new owner faces was that the land lease had “very onerous terms,” ​​a source told us.

“The appraisers told the brokers not to waste their time – the whole wax ball was for nothing,” we are told.

But Anton and Lee insisted on finding a buyer. “They expected to receive offers from foreign investors who see New York as cheap. They did, but they were surprised to hear from Oklahoma City as well, ”said an insider.

Analysts speculated last winter that the lease could fetch $ 70 million to $ 75 million. But two circumstances caused prices to drop. The restoration of the unfinished facade had to face more costs than expected. In addition, the land lease had to be adjusted to make it more fundable. The parties were able to agree on modified conditions after several months of negotiations.

Mission Capital, a division of Marcus & Millichap, stepped in to secure acquisition financing for Burnett Equity.

Meanwhile, retail brokers Danny Volk and Andy Kim have been called upon to fill empty storefronts. Even before the lease deal was done, they were successful in securing leases for yet to be named Korean-themed cafes on the 32nd Street side and an upscale restaurant. American Bistro on Broadway.

Stores and restaurants will open over the next year.

An exuberant Anton said: “After a year of working on this complicated chord during the dark days of Covid, I can’t wait to embarrass myself while singing karaoke in the new Martinique. It will be the funniest hotel in town with five restaurants at the crossroads of Koreatown and Nomad.

Growing workspace provider Industrious has signed a 10-year, 43,874 square foot partnership agreement with 261 Madison Ave. of Sapir Organization, a mid-century tower block two blocks from Grand Central Terminal. It will occupy the entirety of the ninth and tenth floors, which were previously part of WeWork.

Alex Sapir with Emily Ratajkowski at an event
Alex Sapir, seen here at an event with Emily Ratajkowski in 2016, is CEO of Sapir Organization – owner of 261 Madison Ave.
Andre Toth

Owner CEO Alex Sapir said, “As more companies return to work and seek cutting-edge space near transit hubs, the 261 and 260 Madison are poised to play a role. leading player in the Midtown office takeover. “

Industrial real estate director Doug Feinberg said small and medium-sized businesses “are looking for solutions to their return-to-work plans” and flexible space is the answer for many.

Industrious provided workplaces for companies including RR Donnelley, Cisco, Lyft, Spotify, Heineken, Chipotle, Pinterest and Salesforce.

CBRE represented both parties to the deal – Sacha Zarba and Alice Fair for Industrious, and a team led by Peter Turchin and Gregg Rothkin for Sapir.

Lefrak’s 40 W. 57th St. is one of those downtown towers that rarely have much space available. The 800,000 square feet are 97 percent leased after the signing of five new leases and renewals totaling 100,000 square feet.

The largest contract was a 50,000 square foot renewal for Givaudan, a Swiss manufacturer of flavors, fragrances and “active cosmetic ingredients”.

New leases have been signed for A&E Real Estate and Lightyear Capital, while Drasana Capital and Elmwood Asset Management Capital both expanded into building.
A CBRE team led by Howard Fiddle and Gregg Rothkin replaced Lefrak with an internal Lefrak team led by Marylou Berk.

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Newsrust - US Top News: Stunning bankrupt New York hotel gets a second chance
Stunning bankrupt New York hotel gets a second chance
Newsrust - US Top News
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