Scarinci Hollenbeck Represents Blue Sky Hospitality Solutions in Acquisition of $84M NYC Hotel

Scarinci Hollenbeck Represents Blue Sky Hospitality Solutions in Acquisition of $84M NYC Hotel

New York, NY – February 15, 2022 – Scarinci Hollenbeck represented Blue Sky Hospitality Solutions Management Co. (Blue Sky Hospitality) in the $84 million acquisition and financing of the former Andaz Wall Street Hotel. This transaction saw the extravagant Financial District hotel rebranded as the Hyatt Centric Wall Street. Partner & Chair of the firm’s commercial real estate group Donald M. Pepe and NYC Managing Partner Howard D. Bader led the team that represented Blue Sky Hospitality. 

“We are proud to have represented Blue Sky Hospitality in this transaction,” stated Mr. Pepe. “It was a complicated deal with a short fuse involving not only our real estate group, but also our corporate transaction group, commercial lending team, tax, and labor groups. It is something I could not have done without such a stellar team of lawyers behind me,” he continued.

Background of the Acquisition

Navika Group of Companies purchased the hotel portion of the property from Hakimian Organization for $84.7 million. The complex acquisition required:

• amendments to the building’s condominium documents to ensure the new owner’s autonomy;
• a franchise agreement with Hyatt Hotels Corporation;
• corporate governance and investment documents for the new owner entity; 
• settlement of a labor dispute with the local hotel workers union;
• significant ERISA issues related to unfunded pension liability;
• local tax issues; 
• navigation of a pandemic-related severance law;
• clearing liens and code violations;
• negation of an interim liquor operations management agreement and the transfer of a liquor license

“The support we received from Don, Howard, and their team was second-to-none. We appreciate their responsiveness, attention to detail, and innovation,” shared Naveen Shah, CEO of Blue Sky Hospitality.

Blue Sky Hospitality assumed management of the new hotel, which reopened its doors on January 26, 2022, after being closed since March of last year.

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About Scarinci Hollenbeck’s NYC Commercial Real Estate Practice

Scarinci Hollenbeck’s NYC commercial real estate practice group routinely represents public, private, and institutional clients, assisting them in every aspect of the acquisition, development, financing, construction, and utilization of real property assets. Our real estate attorneys work closely with our environmental attorneys, who are recognized for securing development rights for some of the largest office, retail, industrial, and multi-family development and redevelopment projects in the region.

More information on the firm’s NYC real estate practice can be found on our practice page: https://scarincihollenbeck.com/practices/commercial-real-estate

About Scarinci Hollenbeck

With a growing practice of more than 60 highly experienced attorneys, Scarinci Hollenbeck is a regional alternative to the National 250 law firms. We serve the niche practice areas most often required by the owners and leaders of corporations. We offer a full range of services and have developed our business law practice with the expertise and specialization necessary to serve our clients as they adapt to the shifting economic landscape.

More information on our firm’s expertise and range of practice can be found on our website: www.sh-law.com.