A property in New Rochelle that had been envisioned as the site for a 24-story hotel is being offered for sale in connection with a bankruptcy case that”™s playing out in U.S. Bankruptcy Court for the Southern District of New York in New York City.
Federal Judge Sean H. Lane has authorized the retention of Newmark & Company Real Estate Inc. to act as broker for the property on behalf of WP Realty Acquisition III LLC, the debtor whose Chapter 11 bankruptcy case is being heard.
The property is at 115-117 Cedar St. in New Rochelle, at an access ramp for Interstate 95. According to Newmark, the property is zoned for as-of-right commercial uses and can span up to 137,942 square feet of buildable space and could accommodate many uses, including a hotel, office space, storage, warehousing and distribution space and restaurants.
Newmark says that there is a complete set of drawings for a hotel featuring two restaurants, and parking for 433 cars.
In late 2018, a development plan was presented to the City of New Rochelle by Ward Capital Management and its CEO D”™Wayne Prieto for a hotel that would be managed by the Wyndham Hotels Group. At the time, architect Gregory Sharp told the city council that the hotel tower was meant to create an “iconic architecture identifiable and readable from I-95.”
A zoning amendment was approved and in 2019, the New Rochelle Industrial Development Agency granted nearly $3.3 million in mortgage and sales tax exemptions and a 20-year tax abatement for the project, according to reporting at the time by the Business Journal”™s Bill Heltzel.
Court documents indicate that the property at 115-117 Cedar St. is the primary asset the debtor has and selling it would provide “the necessary liquidity to satisfy the claims of creditors under an anticipated liquidating plan.”
“New Rochelle has been growing very quickly over the past few years as the city looks to embrace new developments and a new influx of residents,” Newmark”™s Executive Managing Director Ron Solarz said. “This site at Cedar Street offers a great opportunity for an investor looking to make their first foray into the area”™s thriving market.”
Newmark”™s Exclusive Rights Agreement between it and the Bankruptcy Estate of WP Realty Acquisition III LLC grants Newmark the sole and exclusive right to negotiate for and to procure a competing offer and alternate sale transaction “designed to attract competing offers.”
An existing three-story building on the site had at one time been home to the Don Coqui restaurant and, before that MacMenamin”™s Grill.
