Capstone Equities buys $31M note at Meadow Partners’s Garment District hotel

Capstone Equities through the entity 42 W 35 LLC bought a note with an original principal of $31 million from AllianceBernstein secured by Meadow Partners’s hotel building at 40 West 35th Street in the Garment District, Manhattan.
The deal closed on February 4, 2022 and was recorded on February 24, 2022. The prior lender was AllianceBernstein which held debt that had an original loan amount of $31 million.
The property has 55,498 square feet of built space and 3,732 square feet of additional air rights for a total buildable of 59,250 square feet according to PincusCo analysis of city data.

This is for debt on the Gregory Hotel, which Meadow Partners bought in September 2014 for $49.34 million. The signatory for Capstone was Justin Adelipour. AllianceBernstein refinanced the building with the $31 million loan in 2017.  To finance the loan purchase, Capstone borrowed an undisclosed about from Maxim Credit Group and collaterally assigned rights in the loan to Maxim.
In the Garment District, the majority, or 69 percent of the 53 million square feet of built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 4.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Garment District has had very little major development activity relative to other neighborhoods.It had 561,900 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.
On the tax block, the majority, or 90 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 4 percent of the space.
The owners according to the Department of Housing Preservation and Development includes Peter Andresen, head officer and Natalie Bogan, agent. The business entities are The Gregory Hotel and + 42 West 35th Property, Llc.

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