David Schwartz’s Slate Property Group is acquiring the Stewart Hotel and will seek to turn the shuttered Midtown hotel into permanent affordable housing, according to sources familiar with the situation.
Slate and the nonprofit Breaking Ground are in the process of buying the hotel from Jack Yadidi’s Sioni Group and Isaac Chetrit’s Patriarch Equities for around $275 million, according to sources. The deal has not yet closed, a source said.
Yadidi filed plans with the city last year to convert the property into a 625-unit residential project.
The site was a 618-key hotel, but it closed down in 2022 and was temporarily used as a migrant shelter.
Patriarch, Sioni and Highgate acquired the then-four-star hotel across from Madison Square Garden in 2016 for $217.5 million and secured a $158.8 million loan from Blackstone. In early 2024, Isaac Chetrit acquired Highgate’s stake in the hotel, clearing the way for the conversion.
The building can be turned into a hotel as-of-right, meaning without new zoning.
The hotel, at West 31st Street, was built in 1929 as the Hotel Governor Clinton, named for New York state’s first governor, George Clinton.
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