Yellowstone Real Estate buys Watson Hotel in New York for $ 175 million
The pandemic’s biggest troubled Manhattan hotel deal just closed for $ 175 million.
Yellowstone Real Estate Investments from Isaac Hera has purchased the 600-room Watson Hotel at 440 West 57th Street, Bloomberg News reported.
Yellowstone bought the lease on the property as well as the mortgage held by HSBC, who shopped the loan after Richard Born and Ira Drukier’s BD hotels. in default Last year.
“The Watson represents a unique and rare opportunity for us to gain substantial scale on West 57 Street,” Hera wrote in an email to the publication. “We strongly believe in the strength of the US market as a whole and the New York market in particular. “
The loan financing the hotel’s ground lease had an outstanding principal balance of $ 33.9 million. Eastdil Secured advised the sellers of the loan and lease.
Investors have been waiting for a large number of troubled hotels to trade since the pandemic began, but so far the wave of defaults has not materialized. Yellowstone deal biggest in New York since billionaire Reuben brothers paid $ 150 million for the Surrey hotel at the end of last year.
[Bloomberg News] – Rich Bockmann