Developer Pays $30M for NoMad Hotel Site Previously Facing Foreclosure

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A development site in NoMad originally slated to be the world’s tallest modular hotel has been purchased by Pro-H Development after previously facing foreclosure, according to city records made public Monday.

The Brooklyn-based developer bought the vacant lot at 842 Avenue of the Americas from the Chun family’s 842 Enterprises Inc. for $30 million, property records show. Pro-H closed the deal through the entity 842 Edenview, with Hung Pin Hung listed as the signatory for the buyer.

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Robert Chun and Helen Chun, the couple listed as signatories for the seller, could not be reached for comment, while a spokesperson for Pro-H did not immediately respond to a request for comment. PincusCo first reported the deal.

In November 2017, Robert Chun submitted a proposal to build a 77,819-square-foot, 168-unit hotel on the lot, and the plan was approved the following year. Chun received $65 million in construction funding for the building in 2019, when he demolished the six-story property that once stood in its place, PincusCo reported.

But Chun’s project stalled in December 2023, when lender Avana Capital filed a $33 million pre-foreclosure action at the site due to an outstanding $25.5 million on its $50 million loan, court records show.

The foreclosure case was settled in August, allowing Chun to hand over the property to Pro-H, Crain’s New York Business reported.

The proposed hotel at the site — set to be operated by Marriott — was expected to stand at 26 stories, making it the tallest modular hotel in New York City, higher than CitizenM’s 19-story hotel in the Lower East Side, according to Crain’s.

Considered an eco-friendly approach to developing, modular buildings involve constructing sections away from the building site then delivering them to the intended property. Other modular projects in New York include the 365-unit apartment building at 461 Dean Street, which at 32 stories is currently the nation’s tallest modular apartment building.

Now it’s Pro-H’s turn to take a crack at modular construction, after completing residential development projects at 881 Lexington Avenue in Brooklyn’s Bedford-Stuyvesant neighborhood and at 1042 Atlantic Avenue in Crown Heights, where a 17-story tower is underway, Crain’s reported.

And Pro-H plans to build a residential condo on the Avenue of the Americas site, with construction expected to start in the spring, The Real Deal reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.