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Stalled Conversion of Maritime Battery Bldg. Gets a Lifeline
Midtown Equities is expected to take a 30% equity interest in the unfinished conversion of the Battery Maritime Building into a hotel. Construction would resume sometime this fall and be completed in 2020. This is some 13 years after the city first named a team led by the Dermot Company to convert the landmarked building at 10 South St. into lodging, with a rooftop restaurant.
The conversion was stalled by cost overruns in 2015. In 2017, a venture between Centaur Properties and Cipriani S.A. took over the sublease from Dermot and received approval to finish the project, but work never resumed.
Midtown Equities reportedly plans to issue a mezzanine loan to the project sometime this month. Once the deal is signed, the Manhattan-based developer will convert its loan position to an equity stake in the approximately $100-million project, and is expected to divide ownership equally with Centaur and Cipriani.
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- ◦Financing
