Republic Investment Company and Capstone Equities have acquired the Smyth hotel in Tribeca for $41 million.
The seller appears to be a joint venture involving Korman Communities, which purchased the hotel in 2017 for $72.2 million. Korman did not immediately respond to a request for comment.
The building was developed and opened in 2009 by Walton Street Capital in a joint venture with Tribeca Associates. In 2010, the pair brought 15 condo units to market, called the Smyth Upstairs. The acquisition by Republic and Capstone does not include those residential units.
“There’s a lack of high-quality hotels in Tribeca and the few new openings have really been incredibly successful,” said Joshua Zamir, founding partner of Capstone Equities. “This location being in southern Tribeca also benefits from demand related to World Financial Center and the Financial District.”
The investors plan to renovate the property to bring it upmarket, but Zamir said it’s too early to say how much that renovation will cost or what exactly it will involve. It’s the pair’s seventh hotel acquisition, following deals for The Renwick, Ink48 and Life Hotel. Rebel Hotel Company will operate the property.
The Smyth’s cultural cache shot up in 2012 after Kim and Kourtney Kardashian stayed in the development while they shot the first season of E! Network’s “Kim and Kourtney Take New York.”
The 100-room hotel contains about 7,000 square feet of indoor and outdoor event space. The building, including the condos, is 13 stories high, according to tax records. The total area of the building is more than 71,000 square feet.
Republic and Capstone aren’t the only investors eyeing Tribeca.
Broad Street Development and partner TPG Angelo Gordon are seeking to convert a 10-story storage facility at 139 Franklin Street into up to 18 upscale condo units. The pair acquired the building for about $44 million and total capitalization will cost about $100 million.
In March, Urban Capital Group and Prosper Property Group announced plans to turn 32 and 34 Walker Street, in part a former textile warehouse, into five full-floor loft condos and ground-floor retail.
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