Morrison Cohen Represents Quadrum Development Corp. in Purchase of Brooklyn’s Williamsburg Hotel at Bankruptcy Auction

Late last month, the U.S. Bankruptcy Court for the Southern District of New York entered an order approving sale of the Williamsburg Hotel to Morrison Cohen client Quadrum Development Corp. for $96 million. The sale is expected to be consummated through a chapter 11 plan later this year.

The property has been mired in bankruptcy since February 2021, when, after a 2019 loan default, foreclosure process and temporary receivership, then-owner of the hotel, 96 Wythe Acquisition LLC, filed for chapter 11 relief. A trustee was appointed to oversee the bankruptcy in May 2022, paving the way for the sale process, which resulted in competitive bidding during an auction that took place over several days.

Quadrum is a London-based real estate investor, developer and operator specializing in hospitality. It owns and operates the Arlo Hotel platform and brand in New York and Miami. With the purchase, Quadrum adds this 147-room, 10-story property to its portfolio.

Morrison Cohen served as bankruptcy counsel for Quadrum in the acquisition. A bankruptcy case often provides an efficient market for the sale of a business or its assets. Buyers benefit from the transparency of the process, judicial supervision and the ability to acquire assets free and clear of liens, claims and encumbrances. However, the process is anything but simple and requires knowledge of the bankruptcy process, deal making and finance. Morrison Cohen advises on numerous real estate and hospitality restructurings and bankruptcy matters across the country, representing real estate buyers, lenders, developers and investors, as well as commercial landlords and tenants.

Joseph T. Moldovan and David J. Kozlowski represented Quadrum Development Corp.

The case is In re 96 Wythe Acquisition LLC, Bankr. S.D.N.Y. 21-22108-SHL; the sale order can be found at docket number 881.