The 270-room Mondrian Soho is on the auction block, The Real Deal reports. This following foreclosure proceedings launched in January 2013 by lender German American Capital Corporation. The Manhattan hotel on Crosby Street in Soho, will be sold at a sale scheduled for January 7, 2015, according to court records.
The court had granted summary judgment in favor of German American in July. Developer Sochin Downtown Realty owes the lender, a subsidiary of Deutsche Bank, $250.5 million, plus more than $84,000 each day after August 18, court records show, and as reported by The Real Deal.
A buyer appears ready. Barring any complications at the auction, The Real Deal writes that a group led by Sapir Organization’s Alex Sapir will buy the Mondrian.
Before the court ruling in July, German American negotiated a deal to sell the hotel for $205 million to a group including Sapir, Rotem Rosen and Gerard Guez, founder and owner of Buddha Bar. However, since the lender controls the mortgage—not the building itself—the property must be sold at auction.
Still, anothe buyer could jump in. Morgans Hotel Group, which has managed the hotel since 2011, was interested in buying the hotel at one point, The Real Deal also writes.
In October, Morgans filed a lawsuit to keep the hotel in its portfolio, claiming it would be owed $110 million in fees if its 30-year agreement to manage the hotel wasn’t honored.