The site of the Hudson Hotel in Columbus Circle is facing new financial challenges as Parkview Financial, the lender for the property, has filed for Chapter 11 bankruptcy protection, according to a report from Crain’s. Parkview stated that this filing should not impact current residents at the property.
Parkview took this step to allow time to recapitalize the building and aims to continue with its plan to convert the 24-story structure into 400 rental apartments. However, this effort will proceed without CSC Real Estate, the original developer on the project.
Earlier this year, CSC avoided foreclosure but was later sued by Parkview in July. The lawsuit accused CSC co-founders Alberto and Salomon Smeke Saba of mismanaging construction and failing to resolve issues with city authorities necessary for progress. In response, the Smekes said they had started addressing these concerns with New York City’s Department of Housing Preservation and Development. They also claimed that Parkview did not properly fund the project. The legal dispute ended when both parties discontinued their lawsuits in August.
CSC has since left the project but did not provide specific reasons for its departure when asked by Crain’s.
Parkview originally provided $207 million in financing for purchasing and redeveloping the Hudson Hotel at 353 West 57th Street in May 2022. Construction began soon after, but complications arose about a year later, including uncertainty over what would happen to renters living in one of the hotel’s single-room occupancy units.
The Hudson Hotel was developed in the 1920s under Anne Morgan, daughter of J.P. Morgan. Over its history, it has served various purposes such as housing single women and acting as headquarters for television station WNET before becoming an 878-room hotel in 2000. The hotel closed during the pandemic in 2020.
