BD Hotels ups debt to $125M with Wells Fargo at The Chelsea Hotel

BD Hotels through the entity Chelsea Hotel Owner LLC as borrower signed a refi loan with lender Wells Fargo valued at $125 million for The Chelsea Hotel at 216 West 23rd Street and the adjacent eight-unit residential walkup building (C1) at 229 West 22nd Street in Chelsea, Manhattan.
The deal closed on June 5, 2025 and was recorded on June 12, 2025. The prior lender was Wells Fargo which held debt that had an original loan amount of $100 million. The two properties have 174,350 square feet of built space and 2,747 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $716 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for BD Hotels was Richard Born . The signatory for Wells Fargo was Matthew Kacheris .

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Marcus Nicolaidis, head officer and Daniel Romano, officer. The business entity is Chelsea Hotel Owner Llc. Out of the two properties, one with a total of 174,350 square feet of built space generated revenue of $21.4 million per year.

The property

The zoning is C2-7A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The property is an Individual Landmark. The city-designated market value for the property in 2022 is $30.1 million. The property has 49 rent regulated units according to city tax records from 2023.

Violations and lawsuits

The properties were involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $1 million judgment concerning a construction filed on February 26, 2025, by BD Hotels against NYS Division of Housing and Community Renewal. In addition, according to city public data, the properties have received one DOB violation, three housing violations, and one housing violation in the last year.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 7th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Chelsea has 1.6 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On the tax block of 216 West 23rd Street, PincusCo has identified the owners of 13 of the 25 commercial properties representing 526,691 square feet of the 733,123 square feet. The largest owner is Brodsky Organization, followed by Bd Hotels and then Sol Goldman Investments.
There are no active new building construction projects on this tax block.

The majority, or 42 percent of the 733,123 square feet of built space are elevator buildings, with hotel buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that BD Hotels owned at least 15 commercial properties with 111 residential units in New York City with 1,059,991 square feet and a city-determined market value of $385.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 99 percent of the 1,059,991 square feet of built space are hotel properties, with walkup properties next occupying 1 percent of the space. They are all located in Manhattan.

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