Cooper Square Hotel Sells for $67.5 Million

The troubled Cooper Square Hotel in Manhattan's East Village has sold for $67.5 million, according to New York City records.

The closing price is lower than the $91 million that was previously reported.

Hotelier Andrew Balasz and New Jersey-based Ironstate Development Company were the buyers. Fortress Investment Group provided debt, the Wall Street Journal previously reported. Balasz and officials at Ironstate weren't available for comment.

Westport Capital Partners LLC, the hotel's previous mezzanine lender, was the seller. It took over the property from developers Klaus Ortlieb and Matthew Moss last year in a $70.9 million debt restructuring.

A spokeswoman for Connecticut-based Westport declined to comment. But Russel Bernard, a managing principal, previously said in a statement, The Cooper Square Hotel now stands out as an iconic hotel that serves its guests and local community in style and comfort. The hotel has been well received in the marketplace and we expect it to enjoy continued success under the leadership of André Balazs and his team. This investment stands out as a classic example of how Westport seeks to reposition real estate, protect investor capital and create value through opportunistic financial restructuring.

Westport said that operating income at the hotel increased over 60 percent between 2010 and 2011. The 145-room hotel has nightly rates of around $300 to $400, but the previous owners ran into financial trouble after it opened in 2008. In December 2009, lender WestLB moved to foreclose on $52 million in debt, and construction contractors also sued for $9.9 million.

Balasz plans to rebrand the property as the Standard East Village, It will be the fifth Standard Hotel, joining properties in Hollywood, Los Angeles, Miami Beach and Manhattan's West Side. The hotel is said to be a mellow alternative to the West Side hotel, which has an boisterous rooftop party space. The new owners also plan to change the ground-floor restaurant.

Douglas Harmon and Adam Spies of Eastdil Secured were the brokers for the sale.