The stunning but bankrupt NYC Hotel gets a second chance


Call it the Phoenix of Greeley Square.

The landmark, but vacant and construction-damaged Martinique Hotel will soon be up in ashes, thanks to a closed, hard-won lease on a long-troubled property in Greeley Square.

The previously bankrupt hotel will reopen in early December, although most of the 12 to 18 months of external work is ahead. It is re-branded by the Hilton as the Curio Collection, the last shipment before the epidemic closed.
The rebirth reflects the rising fate of the Broadway Nomad-area corridor south of 34th Street, where new Ritz-Carlton and Virgin hotels and hip restaurants like The Smith’s have replaced wholesalers and the dirty pavement bazaar.

“Turning on the lights again on Martinique is a booster shot to Greeley Square and Harold Square,” said the plug-in Midtown South observer.

Martinique’s rescue did not come easily. The buyers are not surprisingly overseas investors, but a little-known company in the Midwest – Oklahoma City-based developer Burnett Equity. Burnett closed the $ 55 million lease last week, sources revealed. Burnett is mostly active in Oklahoma with commercial and residential projects. It is expected to pump more than $ 60 million into Martinique’s discontinued restoration project.

Two women are sitting at an outdoor table in Greeley Square
The Martinique Hotel can utilize Greeley Square’s outdoor seating and its proximity to the Macy’s.
Getty Images

1897-Vintage Martinique, 1260 Broadway on West 32nd Street, was believed to be the city’s longest-running hotel until the epidemic closed. At various periods in its history it has been a great destination for luxury hotel, SRO and, more recently, middle-market travelers.

We first reported the leasehold offer in March. Marcus and Millichap brokers Eric Anton and Nelson Lee were tapped by a Florida private landlord to sell a bankrupt lease in December 2020, with 68 years remaining.

Full exterior rendering of the Martinique Hotel
Upon completion, the Martinique Hotel will feature restaurants and karaoke.
Nelson Lee

After the contractor died in late 2020, the mortgage went into foreclosure. Adding to the challenge, the 530-room property has 34,000 square feet of retail space that is vacant except for a smaller Chase Bank branch. The property’s landmark status was that renovation work had to be performed with kid gloves and construction was years ahead of schedule.

But a source told us that the toughest hurdle the new owner faces is that the ground lease has “very heavy rules.”

“The appraisers told brokers not to waste their time – the whole ball of wax is worthless,” we were told.

But Anton and Lee pressed on the buyer’s search. “They were expected to receive offers from overseas investors who viewed New York as cheap. They did, but they were surprised to hear from Oklahoma City,” insiders say.

Analysts predict last winter that the leasehold could fetch $ 70 million to $ 75 million. But two situations led to price cuts. The incomplete front restoration faced a higher cost than expected. In addition, the ground lease needs to be adjusted to make it more financially efficient. After several months of negotiations the parties were able to agree to the changed conditions.

Mission Capital, a division of Marcus and Millichap, has stepped up its financial security to acquire Burnett Equity.

Meanwhile, retail brokers Danny Volk and Andy Kim were tapped to fill the vacant stores. Prior to signing the lease, he succeeded in leasing the 32nd Street side to unnamed Korean-themed cafes and a high-end American bistro on Broadway.

The stores and eateries will open next year.

An enthusiastic Anton said, “After a year of working on this complex deal in the dark days of Kovid, I can’t wait to embarrass karaoke singing at New Martinique. It is the city’s funniest hotel, with five restaurants at the crossroads of Koreatown and Nomad.

Expanding Workplace Provider Industries has signed a 10-year, 43,874-square-foot partnership with Grand Century Terminal, 261 Madison Ave, Mid Century Tower, two blocks away. It takes up the entire ninth and tenth floors of what was formerly part of WeWork.

Alex Sapir with Emily Ratajkowski at the event
Alex Sapir, featured here in an event with Emily Ratajkowski in 2016, is the CEO of the Sapir Organization – the landlord of 261 Madison Ave.
Andrew Toth

Landlord CEO Alex Sapir said, “As more companies return to work and find sophisticated space near Transit Hubs, 261 and 260 are ready to play a key role in Madison’s Midtown office recovery.”

Doug Feinberg, Director of Entrepreneurial Real Estate, says small and medium-sized companies are “looking for solutions for their return plans” and Flex Space is the answer for many.

Industrious RR has provided workplaces for companies including Donnelley, Cisco, Lyft, Spotify, Heineken, Chipotle, Pinterest and Salesforce.

CBRE represented both sides in the deal – Sappha Jarba and Alice Fair Industries, and Team Sapir, led by Peter Turchin and Greg Rothkin.

40 W. of Lefrack. 57th St. is one of Midtown’s successful towers, with rarely available space. A total of 97,000 leases have been leased out of a total of 100,000 square feet of the 800,000-square-foot five new and refurbished leases.

A 50,000-square-foot refurbishment for the Swiss manufacturer Givadan of flavors, perfumes and “active cosmetic ingredients”.

A&E Real Estate and Lightyear Capital signed a new lease, but both Drasana Capital and Elmwood Asset Management Capital expanded into the building.
The CBRE team, led by Howard Fiddle and Greg Rothkin, represented Lefrock with the LeFrak internal team led by Maryleau Burke.



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