Ian Schrager is working on a new iconic Public hotel at the Dumbo Heights office and retail project owned by Jared Kushner along with RFR’s Aby Rosen and Michael Fuchs.
“We are formulating the ideas and intend for it to be the No. 1 hotel in Brooklyn,” said Schrager. “It’s so exciting and is also exciting to be part of what Michael and Jared are planning there.”
While plans are still being finalized for the Public, Schrager said the building is so large that it could encompass more than one form of hotel. It could include an extended-stay component or Schrager’s idea for a segment that might go head-to-head with Airbnb that he first revealed when the two of us spoke at last week’s National Association of Real Estate Editors conference in Miami, where he was a keynote speaker.
“This will be the next generation of hotels and something on the edge of what is out there already,” Schrager declared.
The 30-story Jehovah’s Witness residential hotel currently houses 508 rooms that all have kitchens. It will be turned over to the developers in 2017 and has the potential to become nearly a 600-room hotel with another 60,000 to 100,000 square feet of food-and-beverage services and meeting facilities.
It will also include an observatory-like restaurant at the top, which has expansive Manhattan skyline views. “Maybe Brooklyn’s answer to the Rainbow Room,” Schrager suggested.
The six-building campus of interconnected buildings that was rechristened Dumbo Heights has become the hottest office development in Brooklyn. They all have sand-colored brick, green-painted windows and interconnected sky bridges and are “authentic” Brooklyn.
They are also nothing like a contemporary proposal for a taller cubist twisting tower — on an unused parking lot — suggested by an architecture firm.
The ownership group that includes Invesco and LIVWRK is curating restaurants and retail that already include the Melbourne, Australia-inspired Bluestone Lane to support employees of companies who include Etsy and WeWork.
“Their idea for the offices and the tech companies and young people — it’s a whole new hub,” Schrager enthused. “It is so exciting to be a part of it.” He later e-mailed: “I was raised in Bklyn. Never thought I’d go back! Now I am incredibly excited about doing a paradigm-shifting game-changing project for my old home!!”
A term sheet has been signed with formal documents to follow. Schrager previously partnered with RFR on the Gramercy Park Hotel/50 Gramercy Park and, for a short time, on the 5 Madison Ave. Clock Tower, which he has since completed as an Edition with Marriott.
At NAREE15, Schrager noted, “Partnerships are all about chemistry. It’s just like picking a wife.” Despite some previous bumps now smoothed over, this sounds like a trifecta match made in real estate hotel heaven.
A majority equity stake has been sold in the 4-year-old luxury rental dubbed High Line 537 and located at 537 W. 27th St. in Chelsea west of Tenth Avenue. The 85 percent stake was sold for $44.2 million to the Hakim Organization.
While just 47,000 square feet in five-stories, the building has 28 apartments, eight with terraces and all with condo finishes, a roof deck and fitness center, and is located less than a block from the High Line park.
There are two retail spaces — one occupied by the hip event space Skylight Modern and the other by Pinch Food Design, which designs food and caters events from its 2,200-square-foot commercial kitchen and design studio.
Brian Ezratty, vice chairman and principal of Eastern Consolidated, and colleague Ross Weiner represented the owner, Tavros. The Hakim Organization was represented by Eastern’s Azita Aghravi.
According to Ezratty, the owners renovated the lobby to add another kiosk-retail space, and brought the fitness center down from the second floor into the current lobby so that another apartment could be added. They also combined two apartments into a larger three-bedroom.
