Related Reportedly Looking to Offload Equinox Hotel
May the fittest bidder win
By Mark Hallum August 17, 2022 12:22 pm
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Related Companies may be looking to offload its Equinox Hotel, the 212-room Hudson Yards asset only completed in 2019.
Bloomberg reported that the developers are looking to get $200 million for the David Childs and Skidmore, Owings & Merrill– designed building at 35 Hudson Yards, which has a mix of hotel, office and retail space including a Stephen Starr restaurant known as Electric Lemon.
Equinox — which Related owns a stake in — will continue to manage the hotel even after the sale, Bloomberg reported.
Related did not respond to a request for comment.
The potential sale of 35 Hudson Yards comes on the heels of Related looking to sell off other assets in its portfolio, including the Argyle House luxury apartment building in Los Angeles.
Marketing materials shared with Commercial Observer in May showed that Related was seeking a sale on an all-cash basis, or with financing in place of $80 million at 3.65 percent interest. An asking price was not included and Related did not return requests for comment at the time.
Then, in April, Related seemed to be taking another look at their financing for its Hudson Yards assets and sought to modify the $1.2 billion loan from Deutsche Bank and Bank of China on The Shops & Restaurants at Hudson Yard. The developer was successful in extending the maturity date by four years, CO reported at the time.
The seven-story mall was originally anchored by Neiman Marcus but the department store was one of the first to file for bankruptcy during the pandemic and shuttered the Hudson Yards outpost just 16 months after opening. Related is converting the store into office space, with sources previously telling CO the developer was close to securing a tenant for.
Mark Hallum can be reached at mhallum@commercialobserver.com.
