Luxury Hotel Breaks Ground in Tribeca

The partnership, including Caspi Development, Mactaggart Family & Partners and Barone Management, expects to deliver the 96-key Manhattan property in 2020.

Left to right: Joshua Caspi, principal of Caspi Development; Scott Barone, founder of Barone Management; and Ivaylo Ninov, managing director of Mactaggart Family & Partners

The developers of an eight-story luxury hotel planned for 456 Greenwich St. in Manhattan’s Tribeca neighborhood are betting on demand for ultra-luxury accommodations and a lack of supply in an area that is booming with new development.

“Combining its historic roots with an extraordinary influx of development and investment, Tribeca continues to be one of the most charming and sought-after neighborhoods in the entire city,” Joshua Caspi, principal of Caspi Development, said in a prepared statement.

Scheduled to open in 2020, the 96-key, 94,000-square-foot hotel is being developed by a partnership including Caspi Development, Mactaggart Family & Partners LP and Barone Management LLC. It will run the entire length of Desbrosses Street between Greenwich and Washington streets, one block east of the Hudson River, and will feature six full-service food and beverage venues. The hotel will have the largest screening room in Lower Manhattan along with a 1,500-square-foot interior courtyard, full-service spa and meeting space.

Plans also call for an oversized gym, guest-only rooftop day pool and the possibility of a private member club.

An unidentified international hotel operator has signed an agreement to run the hotel and an announcement is expected in 2018.

Luxury hotel market

“We see a gap in the ultra-luxury hotel space market, both from a location and programming point of view. We are fortunate that we had the opportunity to acquire one of the premier development sites downtown,” Ivaylo Ninov, managing director of Mactaggart Family & Partners, said in a prepared statement.

Even in Manhattan, with a large supply of hotels and more planned in the next several years, luxury properties are doing well, according to the PwC Third-Quarter 2017 Manhattan Lodging Index.

“In the third quarter, higher-priced hotels in the Luxury and Upper Upscale classes had greater occupancy growth and less severe offsetting declines in ADR, resulting in them outperforming hotels in the Upscale and Upper Midscale classes. Luxury hotels were the only segment that saw RevPAR growth at 1.5 percent. RevPAR performance in the Upper Upscale hotels was relatively unchanged, declining 0.1 percent,” the PwC report stated.

The project team on 456 Greenwich St. includes interior designer Martin Brudnizki and architect Stephen Jacobs. AECOM Tishman is handling construction management and Lehrer LLC is serving as the owners’ advisor. AECOM Tishman most recently delivered the Baccarat Hotel & Residences on West 53rd Street and the Four Seasons hotel in Lower Manhattan, while the members of the Lehrer team worked on the Baccarat and the Four Seasons Surf Club in Miami.

Image courtesy of Caspi Development