Hawkins Way Capital Buys Former Financial District Migrant Shelter for $155M

A Financial District hotel that served as a migrant shelter until June has traded hands for $154.5 million, according to property records.

Hawkins Way Capital bought the 492-room tower at 99 Washington Street, previously branded as a Holiday Inn, from Philadelphia-based GF Hotels & Resorts. 

It’s unclear how much GF Hotels & Resorts bought the property for in October 2014, but the company took out a $135 million loan from UBS Real Estate Securities around that time, according to city records.

“This acquisition reflects Hawkins Way’s focus on investing in out-of-favor assets feeling post-COVID-19 effects with strong potential,” Joshua Bird, a partner and general counsel at Hawkins Way Capital, said in a statement. “Located in the heart of Manhattan’s Financial District, the property offers substantial opportunity, and we look forward to strategically repositioning it.”

It’s unclear exactly what the property, which has an alternate address of 103 Washington Street and is at the corner of Washington and Rector streets, will become. However, housing and hospitality provider FCL Management is set to operate the property once it is repositioned, and plans to introduce community dining areas, workspaces and a gym, according to Hawkins Way.

A remaining debt on the building of $137 million was transferred to Hawkins Way through Wilmington Trust, property records show.

Mayor Eric Adams announced that the hotel would no longer be used by the city as an immigrant relief center, after 27 weeks of declining numbers of immigrants using services, and a planned reduction of about $2.8 billion on shelter spending the next three fiscal years.

Mark Hallum can be reached at mhallum@commercialobserver.com.