William Vale Hotel Sells to EOS for $177M in Bankruptcy Sale
By Nicholas Rizzi June 20, 2024 12:48 pm
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The long process to find a new owner for Brooklyn’s swanky The William Vale hotel came to a close this week after EOS Hospitality finalized its $177 million purchase of the property.
EOS closed on its purchase of the 183-key hotel at 111 North 12th Street in Williamsburg after its stalking horse bid was approved by a bankruptcy court last month, according to EOS and its brokers. Proceeds from the sale will be used by the former owner, All Year Holdings, to pay back its bondholders in Israel.
“We are excited to expand the EOS portfolio through the acquisition of a premier urban-resort campus in one of New York City’s most dynamic neighborhoods, uniquely positioned for continued growth,” Jenna Kronenfeld, an EOS vice president, said in a statement.
The sale caps a long and contentious battle between the former owners of the 21-story hotel. Yoel Goldman’s All Year developed the property with Brooklyn landlord Zelig Weiss and opened it in 2016.
However, All Year started missing its debt payments on the property in 2020 and Goldman was removed from leadership of the company, Crain’s New York Business reported. All Year eventually filed for Chapter 11 in 2021 to stave off insolvency lawsuits from bondholders on its $1.6 billion in debt.
Weiss, who owned a 50 percent stake in the property, tried several times to get full control of the hotel but was never able to get approval from its bondholders. In 2022, the hotel’s bondholders signed off on a $157 million offer from health care executive Avi Philipson, but Philipson missed the deadline to complete the deal later that year.
The infighting between All Year and Weiss continued until Weiss vacated his lease on the property in 2023, The Real Deal reported. Eastdil Secured and A&G Real Estate Partners started marketing the William Vale for a bankruptcy sale, and EOS submitted its stalking horse bid in February, TRD reported.
As part of the sale, Weiss and All Year will soon lose any control of the property, and EOS said it hired former Le Méridien New York general manager William van Wassenhove to serve as The William Vale’s general manager.
“We are fortunate to have a team comprised of leaders with extensive experience in the New York City hospitality market and are thrilled to provide best-in-class management for this stunning Brooklyn hotel,” Simon Mais, CEO of EOS, said in a statement.
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
