Developer Ben Ashkenazy has recently secured an $80 million loan for his Upper West Side hotel, the Arthouse Hotel at 2178 Broadway. The loan, provided by Citigroup at a 7.38% interest rate for a five-year term, will be used for various purposes, including $2 million for renovations to the hotel facade. The remaining funds, totaling $79.6 million, will be at the discretion of Ashkenazy and his partner, as reported by bond-rating firm KBRA.
Ashkenazy purchased the 291-room Arthouse Hotel in 2016 for $140 million and has already invested $10 million in upgrading the rooms and lobby. The hotel boasts an 80% occupancy rate, charging $300 per night for a room, generating $30 million in revenue and $11 million in net operating income last year. Located near Central Park and Lincoln Center, the boutique vintage-style hotel offers spacious rooms, three on-site restaurants and bars, a lounge, and a 24-hour fitness room.
Despite the loan being described as a routine refinancing by Ashkenazy’s spokesman, Russ Colchamiro, critics have pointed to the developer’s recent financial setbacks. Following the impact of the pandemic, Ashkenazy lost his stakes in two Madison Avenue office buildings due to foreclosure. KBRA noted in a recent report that Ashkenazy has been involved in several foreclosures and loan defaults in recent years.
Ben Ashkenazy, a seasoned player in real estate since his teenage years, is the founder, CEO, and majority owner of Ashkenazy Acquisition Corporation, with a $12 billion property portfolio. The company owns over 100 commercial properties, including a stake in New York’s Plaza Hotel and properties in Boston and London. However, Ashkenazy’s net worth has seen a significant decline since 2019, dropping approximately 60% due to challenges in the commercial real estate market.
Despite his financial setbacks, Ashkenazy remains focused on holding prime real estate assets for the long term. His experience in the industry and track record of successful acquisitions demonstrate his commitment to the real estate market. As he navigates through challenges and continues to make strategic investments, Ben Ashkenazy’s story serves as a reminder of the volatility and resilience required in the world of real estate development.