Linchris Capital Partners, a Plymouth, Mass.-based real estate investment firm, has closed on its purchase of the Allegria Hotel in Long Beach.
The price was not disclosed, though real estate sources estimate it was about $25 million.
The seller, Manhattan-based Stabilis Capital Management, was the hotel’s lender and purchased it a bankruptcy auction in July 2016 for $27.4 million. Stabilis was the successor to original mortgagee Brooklyn Federal Savings, which held a $36 million note on the Allegria.
Manhattan-based development firm Alrose Group spent $22 million in 2006 to buy the former 172-room retirement home called the King David, which was crumbling, and millions more to redevelop the property into a luxury hotel.
The state’s tax department seized 50 of the hotel’s rooms on July 1, 2015 because of arrears on a nearly $6 million tax bill, which forced the Allegria into its second bankruptcy, the first being settled in 2012. Besides back taxes, Alrose Allegria listed law firms, utility companies and the City of Long Beach as creditors in its bankruptcy filing.
The hotel at 80 West Broadway features a rooftop pool, fitness center and multiple lounge and food and beverage outlets, including Jack’s on the Rocks Lounge, the 8,800-square-foot Atlantica Restaurant and the L’Onda Bar. The hotel also serves as one of Long Island’s popular wedding venues, featuring a 3,182-square-foot grand ballroom.
The Allegria was offered for sale fully unencumbered of brand and management, according to a statement from JLL which brokered the deal.
The JLL Hotels & Hospitality team representing the seller was led by Jeffrey Davis, KC Patel, Nikhil Chuchra and Desmund Delaney. Financing for the sale was secured with the assistance of JLL’s Greg Labine and Martha Nay.