Bankruptcy Judge Authorizes Immediate Marketing of Manhattan Hotel Properties for Gemini Real Estate Advisors Chapter 11 Plan Process


NEW YORK, Oct. 08, 2015 (GLOBE NEWSWIRE) -- The U.S. Bankruptcy Court in the Southern District of New York yesterday authorized the immediate marketing of the Best Western Seaport Village, one of the four hotel properties that filed Chapter 11 petitions on Sept. 3, 2015, under the auspices of Gemini Real Estate Advisors (“Gemini”). The auction sale of Seaport Village, located at 33 Peck Slip, is expected to occur before Thanksgiving under a Chapter 11 plan with a sale closing and plan effective date before year end.

“We are excited that Judge Garrity has approved this next step in the plan for the sale of the Seaport Village property,” said Dante Massaro, president and CEO of Gemini Real Estate Advisors.  “We look forward to a successful and robust sale process with closings under Chapter 11 plans that will become effective as soon as possible. We can finally look forward to bringing this process to a successful conclusion despite the ongoing state and federal litigation among the partners. This will ensure that all creditors are paid in full and returns to investors are maximized as they have waited patiently throughout this drawn-out process.”

The court also ordered the parties back on Oct. 13 to announce the marketing and bidding procedures for the remaining three properties – the Jade Hotel Greenwich Village, Wyndham Garden, and the Bryant Park Development site. The three properties are located at 52 West 13th St., 37 West 24th St., and 36 West 38th St., respectively.

In yesterday’s session, Bankruptcy Judge Garrity of the Southern District of New York heard arguments over the bidding procedures proposed for the four properties. While the opposing parties sought to argue over allegations regarding litigation between the partners in state and federal court and claims that some parties should not be allowed to bid for the properties, Judge Garrity directed the parties to focus on the details of the sale procedures for the hearing. When he turned to the sale procedures, it became clear that the parties could agree on many aspects of the sales. At next week’s hearing, Gemini anticipates that the court will specify the remainder of the bidding procedures, the timing of the in-court auctions, and Chapter 11 plan confirmation hearings.

“We are trying to achieve a transparent sale process by which we can repay all creditors in full and maximize returns to investors,” said Howard Weg, co-lead counsel to the debtors and chair of the Restructuring & Business Bankruptcy practice at Robins Kaplan LLP.

“Yesterday’s hearing was another step in the right direction,” added Robins Kaplan partner Scott Gautier, who serves as co-lead counsel to the debtors.

The Jade Hotel Greenwich Village and Bryant Park Development site will be on a 45-day sales track and the Wyndham Flatiron will be on a 60-day sales track. 

Parties interested in bidding on the four properties should contact Douglas Herscher at RobertDouglas in New York at 212.993.7424.

Gemini, based in Charlotte, N.C., with offices in New York City, manages more than three million square feet of properties and $750 million in value in 11 states across the United States.

About Gemini Real Estate Advisors

Gemini is a vertically integrated real estate investment and operating company. Gemini’s disciplined and entrepreneurial approach to investing has built a portfolio of assets that are well positioned to generate cash flow and achieve growth of capital. Gemini currently owns a portfolio of shopping centers, hotels and fixed income investments with a value of approximately $750 million. We manage our investments with the focus of an owner because our principals invest their own funds alongside investors. We continually review our value maximization strategy for each of our properties, carefully monitoring expenses and optimizing revenue potential.


            

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