Hakimian ordered the property in 2006 for $185 million and began a 3-year redevelopment venture. The condos went to market in 2009 and the hotel created its debut the adhering to calendar year.
Hakimian refinanced current debt on the hotel with Annaly in 2017. Joe and Ben Hakimian, the authentic estate firm’s founders, ended up both of those named in the suit as guarantors.
The organization attempted to provide off the setting up early previous year for $125 million on the heels of the pandemic, to no avail.
Previous March, amid citywide shutdowns, things commenced to change sour for the Andaz. Business dried up as a end result of the pandemic and by April, there was only $20,000 in the hotel’s working account, courtroom papers present.
Hyatt pleaded with Hakimian to “urgently” set $1,.2 million into the account for Hyatt to pay its union workers their advantages, pay out off third-party suppliers and manage operations for the thirty day period of April.
The hotel company was anticipating the scenario to expand even a lot more dire.
“Additionally, in gentle of the incredible and unpredictable circumstances, we foresee that further owner funded doing the job cash injections will be essential in subsequent months,” said Frederic Flageat-Simon, Hyatt’s international head of way of living operations in an email to Hakimian and Annaly.
For the duration of the previous 7 days of March, resort occupancy in the metropolis strike a small of 15%, in accordance to analytics business STR. Since then, it is only crept up to about 40%, when compared to an optimal occupancy amount of at the very least 90%.
Hakimian gave Hyatt $180,000 to do the job with, but that was not adequate. If the landlord did not give extra help, Hyatt would end their arrangement, according to a subsequent electronic mail.
In June, the landlord entered into a forbearance settlement with its loan provider, extending the owing date of the total financial loan to December. Even then, Hakimian unsuccessful to pay the mortgage off, or make any desire payments, court docket paperwork present.
Extra than 200 lodges in the metropolis have closed given that March, and the Andaz is closed until finally September, in accordance to its internet site. It’s unclear irrespective of whether Hakimian gave Hyatt extra dollars infusions to help its operations.
A number of other accommodations in Manhattan have fallen into foreclosure including a 7-lodge portfolio lately obtained by Mack Real Estate Group for $316 million at auction. The deal included properties in Situations Sq., Chelsea, Herald Square and the Economical District operating less than the Holiday getaway Inn, Hampton Inn and Candlewood Suites brand names.
A consultant for the Hakimian Corporation did not respond to a ask for for remark.