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ellowstone Real Estate Investments has acquired the defunct Midtown East Maxwell hotel through an auction process, adding another distressed property to its portfolio. The firm took over a $233.6 million outstanding debt on the 697-room hotel at 541 Lexington Avenue in Manhattan, which it purchased for $140 million. The hotel has been closed since April 2022 and still houses a few holdouts, including Galerie Saint Gil.
The loan was initially provided by LoanCore Capital and later covered by Dune Real Estate Partners and Aynsley Capital, who were listed as defendants in Yellowstone's suit to claim the property. Hera-founded Yellowstone has established a reputation for complex turnaround deals since its inception in 2020. This acquisition continues the firm's strategy of acquiring distressed properties.
In recent moves, Yellowstone bought the loan on the New Yorker Hotel for $106 million in September 2023 and acquired a defaulted commercial mortgage-backed securities loan on 1740 Broadway from Blackstone in April.
