Hotel Developer Ian Schraeger Buys 215 Chrystie Street For $50 Million
The Wall Street Journal reports that boutique hotel developer Ian Schraeger is leading a group of investors who have just bought a vacant lot at 215 Chrystie Street. The previous owner of the site, Ruby Schron, sold the development parcel for $50 million. The move came just 10 days after the city’s Board of Standards and Appeals approved a 25-story hotel project on the lot at Chrystie and Stanton streets.
As we’ve previously reported, the hotel would occupy the first 17 stories of the building. The top floors would be reserved for luxury apartments. More from Journal reporter Eliot Brown:
The timeline for the new building just south of Houston Street is unclear, and Mr. Schrager and his partners will likely need to line up additional financing before they can break ground. But a real-estate executive familiar with the plans said the developer intends to make the hotel part of his new brand called Public, which is designed to be avant-garde but less expensive than many boutique hotels. A prior deal to build an inaugural New York hotel for the brand near Herald Square fell apart.
In September, Community Board 3 voted to support the application before the Board of Standards and Appeals. Under normal circumstances, many CB3 members would have balked at endorsing a 376 room, 274 foot-tall hotel in the hotel-saturated Lower East Side. But Schron, who owns 10 Stanton Street, the adjacent affordable housing complex, agreed to extend his government contract for two more decades in exchange for the community’s support. The Journal story noted that Schron and company bought a 99% interest in 10 Stanton and 215 Chrystie in 2005 for just under $10 million.
In October, we reported that the Sperone Westwater Gallery, 257 Bowery, is strongly opposed to the hotel plan because the new tower would block its light. The gallery plans to file a lawsuit next month to stop the project.