According to separate reports from Commercial Observer and The Real Deal, The Shoreham Hotel on West 55th Street in Manhattan is up for sale after the hotel's special servicer foreclosed on the property's borrower Ark Partners in May.
The $32.8-million loan went into special servicing in August 2014. The loan was backed by the hotel and comprised 6 percent of the remaining collateral in the Credit Suisse-sponsored CSMC 2007-C1 commercial mortgage-backed securities transaction, Commercial Observer wrote. Foreclosure was completed on May 7 and the CMBS trust was the beneficiary of the foreclosure sale.
According to data from Trepp, and cited by both news agencies, through the end of November 2016, net operating income for the property was negative $3.3 million on revenues of $8.9 million. The occupancy rate was 77.1 percent YTD with an ADR of $183.52. However, rooms at the hotel in June 2017 reach around $300 per night on weekends and $230 on weekdays.
According to its website, Ark Partners is a private institutionally funded commercial real estate investment company based in New York. Since its inception in 2002, Ark Partners has made investments in 3.5 million square feet of real estate property domestically and internationally, including hospitality-related investments comprised of 1,637 hotel guestrooms.
The site also states that Ark is currently developing three projects in New York City totaling 368,000 square feet.
Past projects include the Viceroy New York.
In 2012, Denihan Hospitality signed an agreement with Ark to manage the 177-room Shoreham, but a representative of the company said it hasn't managed the hotel "for quite sometime now."