Moskovits’ Williamsburg Hotel Sells at Auction for $96M
Quadrum Development Corporation won the 147-room hotel at 96 Wythe Avenue in Williamsburg, Brooklyn, on Thursday, and a hearing to approve the sale of the property is scheduled for Jan. 17, Bloomberg reported.
Heritage and Quadrum did not respond to a request for comment.
The proceeds from the auction will likely go toward Heritage’s debt on the hotel, amounting to between $50 million to $100 million.
Heritage bought the site between North 10th and North 11th streets for the eight-story hotel in 2012 for $4.85 million. Construction was completed in 2017.
The hotel struggled with low occupancy rates and revenues per available room, an important lodging-industry benchmark, and Heritage defaulted on its $68 million loan on the property from Benefit Street Partners in 2019, CO previously reported.
As far back as March 2019, Heritage was entertaining bids from a number of potential buyers for the hotel, which included Brookfield Property Partners, with at least one of the offers reaching about $135 million, CO reported at the time.
No deal ever went through, and Heritage nearly lined up a $76 million refinancing from CREMAC Commercial Finance, but the bridge loan never closed and Heritage filed for bankruptcy on the hotel in February 2021.
The United Kingdom-based Quadrum operates many of the hotels in its portfolio under the brand name of Arlo, such as the Arlo SoHo at 231 Hudson Street.
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