David Schwartz’s Slate Property Group closed on its acquisition of the Stewart Lodge in Midtown Manhattan, readying a large hotel-to-residential conversion.
Slate and its nonprofit accomplice Breaking Floor acquired the property at 371 Seventh Avenue for $255 million, Crain’s reported. Over the summer season, The Actual Deal reported that the companions have been nearing a deal to seize the property from Jack Yadidi’s Sioni Group and Isaac Chetrit’s Patriarch Equities for round $275 million.
Yadidi and Chetrit had envisioned a conversion of the property. Yadidi filed plans with the town final 12 months to transform the property right into a 625-unit residential undertaking. It was a 618-key resort, however it closed in 2022 and was briefly used as a migrant shelter.
Slate and Breaking Floor are pursuing an identical undertaking, although with a barely decrease unit rely.
The incoming possession group will convert the property into 579 inexpensive housing models, together with residences for previously homeless people. Month-to-month rents are anticipated to start out between $1,385 to $1,731.
The redevelopment will even embody workplace house for social providers overseen by Breaking Floor. The conversion is anticipated to take two years, a shorter timeline than comparable initiatives as a result of property’s present residential-favorable structure.
The all-in price of the redevelopment, together with the constructing acquisition, will attain roughly $500 million. The state’s Lodge and Business Conversions Program is offering $87 million in financing.
“This undertaking combines extraordinary scale, speedy building and long-term stewardship by a revered non-profit,” Schwartz stated.
Patriarch, Sioni and Highgate acquired the then-four-star resort throughout from Madison Sq. Backyard in 2016 for $217.5 million, securing a $158.8 million mortgage from Blackstone. Early final 12 months, Chetrit acquired Highgate’s stake within the resort, clearing the way in which for the conversion.
Slate is among the metropolis’s most prolific inexpensive housing builders. A couple of months in the past, the town picked Slate, Xenolith Companions and nonprofit Comunilife to construct greater than 600 inexpensive housing models in northern Manhattan. The staff will develop 4095 Ninth Avenue, a long-vacant, city-owned website alongside the Harlem River in Inwood.
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Isaac Chetrit, Sioni file Stewart Hotel conversion plans
Slate Property Group to buy Stewart Hotel from Isaac Chetrit, Sioni
City picks David Schwartz’s Slate to build 600 affordable units on Inwood waterfront
