Capital Insight Acquires Hudson Yards Hotel Property in Foreclosure Auction

Capital Insight has acquired a former hotel with retail and parking in Manhattan’s Hudson Yards for somewhere between $68 million and $71.3 million, according to court records. 

Investment banking business Capital Insight — the former lender and debt holder on the property — took ownership of the 12-story building at 511 Ninth Avenue through a foreclosure auction. The auction occurred after a joint venture that formerly included Assa Properties fell into financial troubles associated with the property and the site went to special servicing through CW Capital Asset Management.

Salim “Solly” Assa denied owning the property at the time of foreclosure, however, telling Commercial Observer that his firm had exited ownership in the property pre-COVID, with the other investors in shell corporation 9th Ave Hotel Property Holding LLC taking over Assa Properties’ shares. From there on out, Assa Properties remained involved as a property manager.

Solly Assa and Ezak Assa are listed as defendants in the foreclosure action, regardless, alongside the LLC 9th Ave Hotel Property Holding.

Capital Insight and CW Capital did not immediately respond to requests for comment.

PincusCo first reported the foreclosure auction, saying Capital Insight was expected to use the property as a cash-flowing asset with its six commercial condominiums.

Assa planned the Ninth Avenue development as a combination hotel-multifamily property branded as Galerie515 Hotel & Condominium Residences when construction first began in 2012. The residential portion was also named Lana at some point, and the Cassa Hotel Times Square portion closed in 2020.

A new steakhouse named Vida Steakhouse is set to open in the retail space at 511 Ninth Avenue next year, but it’s unclear if that lease will proceed under new ownership.

The most recent property records linking the ownership to the Assa family date back to 2014, with filings linked to Cassa Capital, one of Assa’s other organizations, through an address at 410 Park Avenue.

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

Update: This story has been updated to clarify that Assa Properties said it was not involved in the foreclosure auction.