SIR Chelsea LLC, a real estate entity which includes the hoteliers Ira Drukier, Richard Born (BD Hotels) and Sean MacPherson, has purchased the legendary Hotel Chelsea for $250 million, The Real Deal reports.
The purchase was closed on Oct. 28.
The 250-unit landmark Chelsea hotel, which was built between 1883 and 1885, is known for the fame of its residents over the years, like the poets Allen Ginsberg, Arthur Miller, Patti Smith and Bob Dylan.
The new owners plan to renovate the property located at 222 West 23rd Street, as a hotel with 120-plus rooms and condominiums. It is not clear yet how many apartments will be built. The hotel closed to guests in 2011. It is expected to reopen by the second quarter of 2018.
James Spitzer from Holland & Knight, the buyers’ representative, told the Real Deal, that MacPherson and BD have teamed up a number of times before including the Bowery, Ludlow, Maritime hotels and Marlton Hotel.
The Real Deal added that the involvement of BD Hotels, the biggest owners of boutique hotels in New York City, got involved in the acquisition of the hotel after the exit of Ed Scheetz in March. Scheetz parted ways with other owners — investor Bill Ackman, Leucadia National Corp. chairman Joseph Steinberg and real estate investment firm Wheelock Street Capital — who began talks with BD Hotels.
BD Hotels holdings are valued at about $2 billion, according to data compiled by Bloomberg. The two partners, Ira Drukier, Richard Born co-owned the Greenwich Hotel with actor Robert De Niro, and the Mercer in SoHo with Andre Balazs.