New York hotels may be in depression, but some buyers are betting that a recovery is imminent.
Days after acquiring a financial district hotel from Sam Chang’s McSam hotel group for $ 69 million, Concord Hospitality offloaded its 21-story hotel at 30 West 46th Street for $ 88.5 million, according to public documents filed. Wednesday. The building most recently housed a 196-key Cambria hotel, which is now permanently closed.
Concord bought the land adjacent to Times Square in 2013 from Gary Barnett’s Extell Development for $ 30 million, building the hotel soon after. The 126,000 square foot building sits just across 46th Street from a massive Diamond District assemblage re-enacted by Extell.
The identity of the buyer remains a mystery. Some documents list the Care LLC of Flaherty & O’Hara, a Pittsburgh law firm serving clients in the alcoholic beverage industry. Others point the finger at Arnold & Porter Kaye Scholer. The signing member of the LLC is Gregory Weingart, a Pittsburgh attorney who has represented anonymous buyers in two other McSam Hotel Group hotel purchases in the past year.
It is not known if the sales are tied. Magna Hospitality Group, which public records reveal was at least one of the previously anonymous McSam buyers, did not return a request for comment.
The property carries a considerable amount of debt. In 2013, Concord took out two mortgages worth $ 46 million. In 2016, he consolidated the two with a third note, bringing his total debt to $ 61 million. On the same day he acquired the note, the new buyer assigned the mortgage to KSL Capital Partners, a Denver-based lender that works exclusively with travel and leisure companies.
Concord, which did not respond to a request for comment, has hotels in 23 states, Washington DC and Canada, according to its website. Weingart declined to comment.