The saga of the previous Z NYC Resort in Lengthy Island Metropolis took one other flip final month when a former creditor on the property bought it for a sinking sum.
Palette Motels acquired 11-01 forty third Avenue from Taconic Capital for $25.5 million, Crain’s reported. Taconic acquired the previous 100-key resort from Retailers Capital in Could 2021 for about $38.4 million, three years after Retailers acquired it for $32.3 million.
Taconic lent Retailers $38 million on the property in 2019, permitting it to swoop in for its acquisition two years later.
It’s unclear what Palette has deliberate for the location; the corporate and Taconic each failed to answer requests for remark from the publication.
The location was as soon as the house of Z NYC, a stylish spot within the Queens neighborhood. However like so a lot of its hospitality counterparts in New York, it couldn’t outrun the results of the pandemic and closed in 2020.
Hospitality startup Sonder stepped into the void, agreeing to lease your entire property. It finally backed out of the deal, nonetheless, main Retailers to sue the corporate for $2.5 million for allegedly breaching the contract. Sonder went bankrupt final month.
Richard Lou previously ran a sequence of eating places earlier than diving into the resort market twenty years in the past. The Lou household acknowledged its altering enterprise mannequin in 2023 when it christened its enterprise as Palette Motels. The corporate’s portfolio is greater than 20 properties deep, together with the AC Downtown on Maiden Lane in Decrease Manhattan.
Taconic Capital — no relation to Taconic Companions — made waves in the direction of the top of final yr when it was reported that the hedge fund was winding down its business actual property operation and speaking to Axonic Capital about buying certainly one of Taconic’s funds. A deal was finally introduced earlier than the calendar flipped.
Elsewhere in Lengthy Island Metropolis hospitality, the McSam Resort Group bought a 142-key property at 38-04 eleventh Avenue final yr for $40 million. A restricted legal responsibility firm related to Letap Group principal Jasmin Patel bought the newly constructed resort.
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