Global Holdings Takes Over 190-Room NoMad Hotel Via Deed-In-Lieu
Global Holdings Group has taken control of the Mondrian Park Avenue hotel two years after buying the mortgage on the NoMad property.
The firm, founded and led by Israel-born billionaire Eyal Ofer, has taken ownership of the 190-room hotel at 444 Park Ave. South from Moin Development, it announced Wednesday. The price of the sale was undisclosed, and the deal hasn't been recorded in city property records as of Thursday morning.
Global Holdings bought the $110M mortgage on the property in 2021, a year after the pandemic forced the hotel to temporarily shutter. The company reached a settlement agreement with Moin last September that gave the borrower until June 30 to pay off a discounted loan balance, according to a source familiar with the deal.
As part of that deal, Moin deposited the deed into an escrow account, which transferred to Global Holdings as a deed-in-lieu-of-foreclosure deal when Moin didn't pay off the loan by the end of June, the source said.
“Mondrian Park Avenue is an extraordinary asset, perfectly located in the heart of Manhattan at a time when tourists and local visitors are flooding back into the city,” Global Holdings Management Group CEO Jonathan Ofer said in a press release. “Moin Development did an incredible job converting this property into one of Park Avenue’s best hotels.”
Moin Development President David Moinian didn't immediately respond to a message seeking comment.
Moin converted the former 15-story office building at 444 Park Ave. South to the luxury Mondrian Park Avenue in 2017, and in 2019 refinanced the property with a $110M senior mortgage from KeyBank and a $25M mezzanine loan from Fidelis Asset Management, GlobeSt reported.
The takeover continues the Ofers' acquisitive streak — it bought 51 Irving Place, a mixed-use apartment building near Union Square, last week for $30.69M. The company has some 120 properties around the world, including 15 Central Park West, a luxury condominium it developed with Zeckendorf Development and minority partners Fortress Investment Group and Madison Capital. That property’s retail space, which the venture still owns, is facing foreclosure.
Global’s other residential developments in the city include 520 Park Ave. and 18 Gramercy Park South. In all, the company has 10M SF of real estate across the world, including 1,500 hotel rooms, according to a press release.
Hotels in New York were hit hard by the pandemic, but the city's tourist numbers are fast recovering. Visitors to the city this year are set to be at 95% of pre-pandemic numbers.
CORRECTION, JULY 6, 5:40 P.M. ET: Madison Capital is a partner in 15 Central Park West. A previous version of this story incorrectly identified Madison Realty Capital as a partner on the building. This story has been updated.
CORRECTION, JULY 7, 10:30 A.M. ET: A previous version of this story misidentified Moin Development as a division of the Moinian Group. This story has been updated.
