Capstone, Leyad Purchase Hell’s Kitchen Hotel From Brookfield for $58M

Canada-based real estate investment firm Leyad and private equity company Capstone Equities have purchased the Ink48 Hotel in Hell’s Kitchen at a roughly $25 million discount.

The two firms bought the 17-story, 226-key hotel at 653 11th Avenue from Brookfield (BN) Property Partners for $57.8 million, according to city records made public Friday. It’s a significant drop from the $82.7 million Brookfield paid for the 153,363-square-foot property in 2019, The Real Deal reported.

Capstone completed the purchase through the entity CE Ink 48 DE Owner, with owner Joshua Roshanzamir signing for the buyer. Brookfield’s Lisa Strauss signed for the seller, which used the entity BSREP III 653 Hotel, records show.

It’s unclear who brokered the deal. Spokespeople for Capstone, Leyad and Brookfield did not immediately respond to requests for comment.

The deal represents a move down south into the U.S. for Leyad, as the acquisition is its first purchase in New York City, the company said in a press release last week.

“The acquisition of Ink48 Hotel represents a significant step forward in Leyad’s vision to expand our presence in prime urban markets,” Leyad CEO Henry Zavriyev said in a statement. “New York City, with its unparalleled global influence and dynamic tourism and business environment, is an ideal addition to our growing portfolio.”

Previous owner Horizon Global converted the former printing press building into a hotel after it acquired the site in 2006 for $46.6 million, TRD reported. However, the property was foreclosed on by the U.S. Bank National Association in 2008, which provided a loan of more than $136 million on the project, according to the outlet.

PGIM, the majority partner on the development at the time, eventually took over ownership of the hotel on the corner of 11th Avenue and West 48th Street, TRD reported.

Nightly rates at Ink48 begin at $232 per night but rise to $692 on New Year’s Eve and top $750 a night in mid-January, according to the hotel’s website. The website also notes the hotel has an on-site fitness center, complimentary bikes and welcomes pets.

It’s unclear what new owners Capstone and Leyad plan to do with the hotel, but Zavriyev said in a statement that “Leyad hopes to capitalize on current market upswings in New York City’s hospitality sector” and is “actively pursuing other distressed hospitality opportunities.”

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