Banking on Hospitality: Hidrock Realty’s Hotel Play

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“We’re still in the planning stages,” Jack said. “Because of its location in the vicinity of the [World Trade Center] memorial pools, we’re taking a very special approach. It’s not just a real estate deal. This is part of history. We’re going to take our time and do it right, out of respect for all the people who passed away on 9/11.”

The Hidarys praised the people at Marriott, but also said they’d be interested in different partnerships on future hotel developments. “Marriott has a lot of names,” Jack said. “And if I have a building in an area, I can’t make it a Marriott if there’s already one next door.”

Hidrock’s residential portfolio of three apartment and townhouse complexes is concentrated in south Brooklyn. (The four family members live “within a block of each other” in Midwood.) And the firm is making its first jump into Soho with a retail development on Broome Street near West Broadway. It is actively looking in Chelsea.

“The common thread, the theme, is New York,” Steven said.

Of course, another theme is family, and Jack hailed the distinct but complementary talents unique to each of his sons.

“I’m very proud of them, because they give Hidrock an ability to be an expert in lots of different areas,” he said. “So when Abey gets the financing on a building, we’ll get the best rate with the best bank on the best terms. To run a property, Steven’s on top of it, knows what’s going on and knows all the tenants on a first-name basis. I see him walking down the street, and he’s like the mayor. Between that and Eddie, with his construction abilities and knowledge of all the architects, we’ve got it covered. And I play golf.”

The family said that its Herald Square properties are currently at 97 percent occupancy, with tenants including Newsday and Jason Wu, the fashion designer favored by Michelle Obama.

What, aside from its filial nature, sets Hidrock apart from the competition? “We’re not afraid to go in there and put money into a project,” Jack said. “And we’re not afraid to widen our portfolio. It’s always been my angle to add value to anything. We’re not really coupon clippers. We don’t tell partners to just invest money and get a return every year. It doesn’t really work that way. We actively work the project, and every day we think about what we can do to make that project better.”

“As soon as we take over a block,” he said, “the neighbors start trying to copy us. But they don’t know how much attention to detail is needed. They’ll spend $50,000 on a lobby that we’d have spent $200,000 on and think it’s as nice as ours. But it doesn’t come close.”

Any tussles with other development, management and acquisition firms do not seem to be mirrored by sibling rivalries. And Abraham mentioned that he brought his son into the office the day before our interview, perhaps auguring a future generation of Hidarys in real estate. I asked if the business extends to the family dinner table and if family matters intrude on office life.

“We’re always talking real estate,” Steven said. “We eat together, commute together and work together.”

“There’s nothing better than playing with your grandkids and having them around the office,” Jack said, adding that his daughter, Grace, also worked at Hidrock before having three children.

The family’s standards and pride set the Hidrock work ethic. “We don’t just build the average building,” Jack said. “We build beautiful buildings we’d be proud to live and work in.”

A similar mind-set pervades the firm’s hotel undertakings. “We ask ourselves,” Eddied said, “’would we be proud to stay here?”

The Hidarys will get to answer that question when the SpringHill Suites opens this week.

“We’re planning a family stay in the hotel on opening night,” Eddie said. “With our wives, no kids.”

“And then,” Jack said, “the management company will hear from us.”  

bgray@observer.com