Cain International Sells Hudson Hotel in NYC for $207M : Updated
Cain International has sold the iconic Hudson Hotel in New York for $207 million. Commercial Observer has learned.
Montgomery Street Partners — via The Ground Lease REIT, a dedicated vehicle focused on the origination and acquisition of long-term, unsubordinated ground leases— acquired and simultaneously leased the Hudson Hotel under a 99-year ground lease to an undisclosed tenant. Parkview Financial provided $207 million in the form of leasehold construction financing to facilitate a conversion of the property.
Meridian Capital Group negotiated the financing with its New York team led by Morris Betesh and Alex Bailkin.
The 385,124-square-foot, 24-story building is located at 356 West 58th Street. The hotel was shuttered in 2020 due to Covid, but the new plan is to convert the property into a 438-unit residential project with office and commercial space, according to a release from Parkview. The residential units will feature 8- to 10-foot-high ceilings, hardwood floors, stainless steel appliances and quartz countertops, and each unit will have in-unit washer/dryers. There will also be 30,000 square feet of retail space and 25,000 square feet of office space. The project is anticipated to be complete in early 2023.
“It’s such an iconic hotel. We got excited about it based on the location and the history, and we had a great sponsor,” said Paul Rahimian, CEO and founder of Parkview Financial. “With a smaller unit size, the sponsor plans to market the units at a 20 percent discount to other properties in the surrounding area, hoping to attract young professionals, students and small families who appreciate the prime location, best-in-class amenities and unit interiors featuring high-end finishes at below-market prices.”
Situated on a 0.68-acre land parcel, 356 West 58th Street was originally constructed in 1929 as the American Women’s Association clubhouse and residence for young women. In 1941, it was converted to the Henry Hudson Hotel, and in 1997 the hotel was purchased by the Morgan Hotel Group and underwent renovation for use as the Hudson New York Hotel.
Correction: This article was updated and corrected to reflect that Cain International is the previous owner and seller in this deal.
Emily Fu can be reached at email@example.com.