Categorized | Commercial

Ave Hotel Given Up To the Lehman Brothers

Ave Hotel Given Up To the Lehman Brothers
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Lehman Brothers estate has recently taken over the 169,664-square-foot Ave Hotel located at 2170-2178 Broadway at 77th Street worth $191 million; this was confirmed by a spokesperson on behalf of the estate. Lehman had been involved with the said property for the last decade, as reported by Real Estate Weekly, with a $31.7 million worth mortgage in 1997 with a preceding owner.

Ave Hotel’s previous owner, Ota Hotel Owner LP, restricted by Texas-based Highgate Holdings, bought the property in 2007 for $201 million. According to the spokesperson, the strategy of the company has been to capitalize on the value its properties. During that purchase, Highgate actually, took a $37 million mortgage from Lehman Holdings. The way to purchasing the property for Lehman has not been obstacle free and there were not late lis pendens filed against the building, but at the same time, the agreement of sale could have possibly been a deed in lieu of foreclosure.

The hotel has rates beginning from $150 per night and is also houses a Fatty Crab Bar & Restaurant and a Malaysian eatery. The hotel was constructed in 1911 and was initially called as the Wellsmore. It was built as a 12-storey apartment house, which was then sold off for $1.3 million and the agreement was complete in one of the biggest transactions of 1913, according to the New York Times it was “furnished another illustration of the willingness of investors to buy well managed properties in favorable locations.”.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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