Court orders Ashkenazi must repay part of hotel loan

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525 Lexington Avenue and Ben Ashkenazi (photo via Google Maps, Getty Images)

525 Lexington Avenue and Ben Ashkenazi (photo via Google Maps, Getty Images)

The Court of Appeals has finally pulled down the curtain on the court drama surrounding the New York Marriott East Side.

On Thursday, the judge ruled that Ashkenazy Acquisition Corp. must repay its share of the $ 135 million loan to Marriott to: 525 Lexington Avenue that the firm has undertaken a joint venture with the German guarantor Deka Immobilien Investment GmbH, the Commercial Observer reports.

The partnership, dubbed the Lexington Avenue Hotel LP, originally bought the 655-room Marriott in 2015 for $ 270 million, with Deka owning 85 percent of the shares.

Three months after the Marriott closed in March 2020 – a temporary closure that has become permanent in october – The German lender Bayerische Landesbank has arrived, the Commercial Observer reports.

Deka paid the debt in full and then sued the joint venture in August to pay the balance to avoid litigation.

The lower court initially ruled that the dispute should be brought to trial, but the appellate court rejected that decision, ruling instead that the loan agreement indicated that the joint venture was on the hook to obtain a balance sheet.

The decision completes a detailed list of East Side Marriott lawsuits. In 2019, Deka sued Ashkenazi for reneging on a $ 174 million agreement to take full control of the hotel. Then the joint venture sued Marriott in October 2020, misappropriated income amounted to more than $ 12 million. And in February, DekaBank’s creditor, Deka’s parent company, revoked the hotel’s foreclosure rights. $ 53 million outstanding mortgage.

[Commercial Observer] – Suzanne Cavanaugh

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