20 Times Square and Mark Siffin of Maefield Development (Edition Hotels)

Maefield Development’s Times Square Edition has taken a step closer to foreclosure.

A judge granted the hotel’s lenders, led by Natixix SABloomberg News reported that it had the right to foreclose the 42-story property owned by Mark Siffin’s development company.

The hotel, designed by Marriott International and the great hotelier Ian Schrager, has been sealed off since December 2019 when the providers of one Loan of $ 650 million The owner sued the property on the grounds of “numerous unreleased mechanic liens against the property”.

The 452-room hotel on 701 Seventh Avenue, also known as 20 Times Square, opened with great enthusiasm in February 2019. The property was once valued at $ 2.4 billion.

However, it struggled to attract retail tenants and failed to generate positive cash flow, resulting in foreclosure by the lenders. The pandemic then devastated the hotel industry and the hotel has been closed since March 2020.

According to reports, the owner, lender and hotel operator Marriott International in May came to an agreement to reopen the property in the fall, but apparently the plan was not implemented as the health crisis flared up.

New York State Supreme Court Justice Joel Cohen who leads the case has set up a status conference for March 23 to discuss the next step. In general, a foreclosure decision allows lenders to conduct a foreclosure sale to recoup their investment.

[Bloomberg News] – Akiko Matsuda

Contact Akiko Matsuda