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Slate and Breaking Ground Buy Stewart Hotel for $255 Million to Create 579 Affordable Apartments

The deal taps HONDA funding with layered financing to launch a rapid hotel-to-housing conversion near Penn Station.

Total development costs for the affordable housing conversion of the Stewart Hotel in Manhattan, including the acquisition of the hotel, are estimated at about $500 million, of which $86.8 million is being provided through New York State’s Hotel and Commercial Conversions Program. The remaining capital is being provided through a combination of city, state and private funding sources,

Overview

  • The partners acquired the 31-story, 611-room former hotel at 371 Seventh Avenue from Sioni Group and Patriarch Equities, confirming a $255 million purchase.
  • All 579 apartments will be permanently affordable for low-income households and formerly homeless individuals, with projected monthly rents of $1,385 to $1,731.
  • Interior work begins immediately due to compatible hotel floorplates, with full construction slated to start late next year.
  • Total development costs are estimated at about $500 million, including $86.85 million from New York State’s Hotel and Commercial Conversions Program, plus HDC bonds, LIHTC and historic tax credits, and acquisition financing from Wells Fargo and JPMorgan Chase alongside community lenders.
  • Slate will replace major building and mechanical systems and merge rooms for apartments, while Breaking Ground will own and operate the property and provide on-site supportive services under a city health department contract.