Blumenthal family signs $8.5M loan with Castellan Capital for hotel in Gramercy

Sarah Blumenthal and Alice Roy Blumenthal through the entity 54-56 Irving Place LLC as borrower signed an initial loan with lender Castellan Capital through the entity 54-56 Irving Pl LLC valued at $8.5 million for the Inn at Irving Place hotel building (H3) at 54-56 Irving Place in Gramercy, Manhattan.
The deal closed on August 22, 2025 and was recorded on September 16, 2025. The property has 11,640 square feet of built space and 21,917 square feet of additional air rights for a total buildable of 33,573 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $730 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 Sarah Blumenthal and Alice Roy Blumenthal was Sarah Blumenthal. The signatory for Castellan Capital was Paul Salib .

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Alice Beckman, head officer and Naomi Blumenthal, officer. The business entity is 54-56 Irving Place Llc. The 11,640-square-foot property generated revenue of $1.8 million or $154 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Gramercy has 11,640 square feet of built space and 21,917 square feet of additional air rights for a total buildable of 33,573 square feet according to a PincusCo analysis of city data. The parcel has frontage of 52 feet and is 107 feet deep with a total lot size of 5,577 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.4 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $2 million money judgment concerning a contract filed on April 18, 2025, by Sarah Blumenthal against Jacob Eisenstein and EK Realty. In addition, according to city public data, the property has received one DOB violation and $300 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Gramercy, The bulk, or 31 percent of the 11.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Gramercy has 1.5 times the average sales volume among other neighborhoods with $433.2 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Gramercy has 1.5 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 19 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 17 commercial properties representing 818,838 square feet of the 892,192 square feet. The largest owner is Sl Green Realty, followed by Marriott International and then Siba Residences.
There are no active new building construction projects on this tax block.

The majority, or 36 percent of the 892,192 square feet of built space are elevator buildings, with office buildings next occupying 32 percent of the space.

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