The former Ritz-Carlton hotel in Battery Park City has been acquired by Silver Creek Development, a company based in Scottsdale, Arizona. The property, known most recently as the Wagner Hotel, had remained vacant since the onset of the Covid-19 pandemic and was subject to a lengthy three-year bankruptcy process.
Silver Creek Development purchased the lease for the hotel and plans to introduce a new luxury brand to Lower Manhattan. This acquisition marks an end to a difficult period for the property, which had once operated under the Ritz-Carlton name.
The previous owners, Urban Commons and its principals Taylor Woods and Howard Wu, accumulated significant debts including unpaid loans and utility bills. In 2022, Silver Creek bought the outstanding loan on the property and subsequently sued Urban Commons after an alleged default on a $96 million loan.
Urban Commons rebranded the hotel as the Wagner after acquiring it in 2018. The company faced broader financial troubles beyond this property. Their plan to revitalize a historic ocean liner in Long Beach failed, leading to Woods being indicted last year for defrauding investors. Urban Commons’ REIT filed for bankruptcy in 2020, and both Woods and Wu were accused of misusing Paycheck Protection Program funds. A Delaware judge referred to them as “fraudsters” in 2021 and noted their “history of wrongful acts.”
In 2022, Urban Commons placed the Wagner Hotel into bankruptcy protection to halt foreclosure proceedings while other legal issues persisted. During this time, disputes arose with a condo board representing owners of units above the hotel; they claimed Urban Commons stopped paying its share of common area expenses.
Woods attributed some problems at the property to Ritz-Carlton’s management practices and also blamed Battery Park City Authority for not approving redevelopment plans. The Battery Park City Authority controls the ground lease for the site.
Eventually, Woods and Wu were removed from control during bankruptcy proceedings and replaced by a restructuring officer. Greg Corbin was brought in to oversee bankruptcy matters and market the hotel asset while Silver Creek provided funding throughout this period.
Represented by Herrick Feinstein law firm, Silver Creek emerged as the sole bidder with a credit bid exceeding $78 million. In late August, a U.S. bankruptcy judge approved both sale of the leasehold interest in the hotel as well as settlements among Silver Creek, Battery Park City Authority, hotel union representatives, and condo board members. The judge also dismissed an objection from a mechanic’s lienholder that had delayed completion of the sale.
Neither Woods nor Wu received any proceeds from this transaction.
Both individuals have been charged by federal regulators with securities fraud related to investor losses totaling more than $70 million across thirteen hotels nationwide. According to reports from authorities: “Woods denied most of the allegations.” Wu has not yet responded.
