Ian Schrager signs $173.2M refi with Madison Realty Capital for Public Hotel in Lower East Side

Ian Schrager through the entity 215 Chrystie LLC as borrower signed a refi loan with lender Madison Realty Capital through the entity 215 Chrystie Street 1 LLC valued at $173.2 million for the hotel condo at 215 Chrystie Street in Lower East Side, Manhattan.
The deal closed on October 29, 2024 and was recorded on November 15, 2024. The property has 185,744 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $932 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 Ian Schrager was Ian Schrager. The signatory for Madison Realty Capital was Urian Yap. The borrower entity was in care of Witkoff Group.

The property

The hotel condo in Lower East Side has 185,744 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 185,744 square feet. The city-designated market value for the property in 2022 is $103.5 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $79.5 million money judgment concerning a partnership filed on January 3, 2024, by New York City Regional Center against Ian Schrager, Steven Witkoff, and Ziel Feldman. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 5, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 215 CHRYSTIE LLC to create 11 residential units and 1 commercial units in a building at 215 Chrystie Street in Lower East Side, Manhattan, called 215 Chrystie Condominiumthat has a $118.4 million sellout, according to an April 17, 2014 submission to the New York State Attorney General. The principals of the sponsor, 215 CHRYSTIE LLC, were Scott Alper, Ian Schrager, James Stomber, Jr., and Steven Witkoff.

The neighborhood

In Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has near average sales volume among other neighborhoods with $249.1 million in sales volume in the last two years and is the 29th highest in Manhattan. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 647,355 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 167,453 square feet of the 172,352 square feet. The two identified owners are Cammeby’s International Group and Nyc Department Of Housing Preservation And Development.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 172,352 square feet of built space are elevator buildings, with mixed-use buildings next occupying 3 percent of the space.

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