Midtown South hotel’s value chopped in half: Mid-market report
Meadow Partners sold the Gregory at $30 million discount
By: Orion Jones
Meadow Partners’ Jeffrey Kaplan and 42 West 35th Street (Meadow Partners, Google Maps)
The rebound in business travel did not come in time for one Midtown South hotel.
A 132-key hotel called the Gregory has emerged from foreclosure with approximately half the value it had after Meadow Partners’ spent about $60 million to buy it in 2014 and renovate it.
The foreclosure sale was one of 10 deals between $10 million and $40 million recorded in New York City last week. Manhattan and Brooklyn each had four and Queens and the Bronx had two apiece. Combined, the sales fetched $201 million.
Vlash Pepa and Denis Xhari bought the Gregory Hotel out of foreclosure at 42 West 35th Street, in one of the city’s major business districts, for $33.9 million. Eight years ago, real estate investment firm Meadow Partners bought the 55,500-square-foot building for nearly $50 million and spent $10 million on renovations. Luxembourg-based lender AllianceBernstein began foreclosing on the property in April 2021.
In other deals, Gideon Platt’s GP Properties bought a 55,000-square-foot apartment building with 55 units at 105 West 55th Street in Midtown for $32 million. Melohn Properties sold the building.
105 West 55th Street (Google Maps)
Jack Deutsch of Woodcrest Property bought a 76,000-square-foot nursing home at 119-09 26th Avenue in College Point, Queens, for 31 million. The Weingarten and Schon families were the largest of seven owners who sold the building.
Gasoline station and convenience store chain Speedway sold a 27,500-square-foot parcel at 401 West 207th Street in Inwood for $25 million. Iconix Brand Group and wholesale beverage seller Taino Group were the buyers. The property was part of a $42.6 million portfolio sale that included 210 Greenpoint Avenue, 2864 Atlantic Avenue and 1885 Atlantic Avenue in Brooklyn.
401 West 207th Street (Google Maps)
Sam Shpelfogel bought a 23,000-square-foot medical center at 1401 Newkirk Avenue in Ditmas Park, Brooklyn, for $18 million. Jeffrey Berger of B&K Realty Associates was the seller.
Affordable housing developer Phipps Houses Group bought a 38,000-square-foot development site at 110 East 138th Street in Mott Haven, Brooklyn, for $16.1 million. Ryden Realty was the seller. The parcel has a development potential of 176,000 square feet with an inclusionary housing bonus.
Perfume Worldwide’s Piyush Golia bought a 13,800-square-foot office building at 8 East 41st Street in Midtown South for $12.4 million. The Wings Group sold the property.
Robert Saffayeh bought a 19,850-square-foot parcel at 205 14th Street and 228 13th Street in Park Slope, Brooklyn, for $11.25 million. A parish of the Catholic Church sold the properties, which include a 6,600-square-foot residential building used as a rectory and a 22,900-square-foot church.
Yoel Zagelbaum signed as the borrower for the entity that bought a 11,600-square-foot retail and office building at 1732 Webster Avenue in Claremont, the Bronx, for $11.25 million. An affiliate of Daniel Rabinowitz was the seller. The 5,100-square-foot parcel sits in a Qualified Opportunity Zone. The purchasing company received $84.9 million in loan proceeds from Colorado-based Bear Creek Investors.
Abraham Leifer’s Aview Equities bought a 18,500-square-foot development site out of foreclosure at 232 Seigel Street in Bushwick for $10.5 million. Prior owner Toby Moskovits’ Heritage Equity Partners had planned to build a hotel on the site but could not secure construction financing before lender Fortress Investment Group foreclosed on the acquisition loan.