Details about the real estate magnet Joseph Chetrit’s deal to acquire and renovate the famed Chelsea hotel in New York City are becoming clearer.
Acquisition and renovation financing for the sale, which reportedly closed on Tuesday for US$80 million, was negotiated by the Meridian Capital Group, New York City. Meridian has put out a press release stating US$85 million has been secured on behalf of the Chetrit Group and Clipper Equities to purchase and reposition the hotel long-ago known for being the crash pad for the likes of Janis Joplin, Bob Dylan and other counterculture artists. The 36-month, balance-sheet loan was provided by Natixis and features a LIBOR-based rate and a 12-month extension option.
The release stated that the Chetrit Group and Clipper Equities plan to upgrade and restore the Hotel Chelsea “to the quality and aesthetics of other popular boutique hotels in the area while maintaining many facets of the hotel that locals and visitors cherish.” The Chetrit Group owns The Empire Hotel on Manhattan’s Upper West Side where they executed a similar renovation and repositioning plan.
The fate and future of the iconic Chelsea has been a popular topic of debate for more than a year now. Yesterday, HOTELS reported that the sale had been completed and quoted hoteliers who believe the building, its location and historic component can be rejuvenated, while others continue to question its location and state of disrepair.