I recently stayed at The Standard East Village Hotel in New York City. This is one of my favorite hotel brands. Related: see my review of The Standard High Line.
But I felt as if I was let down by The Standard East Village. The lobby was great, but the rooms seemed off-brand. Different from all the others I have stayed at (LA, Miami, High Line). I decided to do some research into how this location was acquired by The Standard.
History: The Original Plan
Founders Matthew Moss and Klaus Ortlieb hit financial trouble and had to sell Cooper Square Hotel, its original name.
Prior to its existence as The Standard East Village, the property was the Cooper Square Hotel. I think it went up in 2008.
In 2009, developers Klauss Ortlieb and Matthew Moss as well as investor Kyle Ransford ran into trouble. Mezzanine lender Westport Capital took over Cooper Square Hotel in a $52 million debt restructuring deal. About 6 months later, in May 2011, Westport Capital Partners hired Douglas Harmon and Adam Spies of Easdil Secured to help market or sell Cooper Square Hotel.
Many entities flirted with buying the hotel located at 27 Cooper Square, including owners of the Soho Grand and Tribeca Grand hotels. They pulled out of a deal at the last minute. Westport took control of the estimated $70.9 million transaction.
The building was sold by Westport Capital Partners, LLC after the original developers Klauss Ortielb and Matthew Moss as well as investor Kyle Ransford ran into financial trouble in 2009.
Here’s some news about the transactions:
- Bank claims $52 million default on Cooper Square Hotel loans
- Westport Capital Partners Announces Sale of Manhattan’s Cooper Square Hotel
- Cooper Square Hotel sells for $67.5 million
- Cooper Square Hotel to become Standard East Village under Balazs
Westport stayed on as the transitional owner until the property was sold in 2010.
Sale to André Balazs Properties
In 2011, Westport sold the hotel property to André Balazs Properties for $67.5 million in 2011.
André Balazs Properties is a hotel group that includes, on the luxury tier: The Mercer Hotel in New York City, the Chateau Marmont in Hollywood, Chiltern Firehouse in London and Sunset Beach in Shelter Island.
André Balazs Properties also has the Standard group of brands, with Standard Hotels in Hollywood, Downtown Los Angeles, Miami Beach, High Line, Meatpacking District, and East Village.
There are a few residential properties in the portfolio as well: Mercer Residences, One Kenmare Square and William Beaver House.
Balazs, the founder, is 60 years old and estimated to be worth about $450 million. He has dated Chelsea Handler and Uma Thurman (he was engaged to Thurman twice).
Current Owners
André Balazs Properties sold the 330-room Standard High Line property for more than $400 million in 2014, a record-setting sale for a hotel of that size in New York. The buyer was Standard International, a management company that Balazs (the person) is an investor in. Balazs profited off of the sale, as it’s estimated he holds a 10-20% stake in Standard International. Balazs reduced his stake in Standard International just prior to the sale, as he previously held a majority interest.
Standard International continues to manage Standard Hotel properties in Los Angeles, New York and Miami.
Remodeling
When André Balazs purchased Cooper Square Hotel, he brought on design firm Ironstate to “inject newfound personality and attitude into its excellent existing framework.” Balazs and Ironstate gutted the lobby, restaurant and ground floor in order to make their aesthetic “relate to the surrounding neighborhood.”
