Chelsea Hotel sale closes for $77.8 million
By Roland Li
The Chelsea Hotel has sold to the Chetrit Group for a closing price of $77.8 million, according to city records.
The sellers were the descendants of a partnership that had managed the hotel since taking over in the 1970s. Marlene Krauss president of Chelsea 23rd Street Corp., signed the deed for the seller.
Behind the scenes, Meridian Capital Group, LLC brokered $85 million in financing for the Chetrit Group and Clipper Equities. Natixis bank provided a 36-month loan.
Ronnie Levine and Aaron Birnbaum of Meridian negotiated the financing.
“Meridian is very pleased to have advised the Chetrit Group and Clipper Equities, two leading value-add commercial property investors, on this important financing,” said Levine in a statement. “By leveraging our strong lending relationships, Meridian was able to secure acquisition and construction financing from a balance sheet lender for this iconic asset, allowing for the development team to make significant improvements to the property and execute its business plan.”
The 175,900 s/f landmark hotel closed its doors to hotel guests earlier this week, although over 100 permanent tenants continue to live in the building during the renovation.
Architect Gene Kaufman will be overseeing the renovation. Kaufman couldn’t be reached for comment.
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