Historic Bowery Savings Bank Bldg To Be Sold for $26 million to Private Equity Firm
The former Bowery Savings Bank, which has in recent years been a venue for parties ranging from glittery fashion launches to weddings run by Capitale NYC, is reportedly under contract to sell for nearly $26 million after the previous owners declared bankruptcy.
| 25 Sep 2023 | 01:52
Former HQ of the Bowery Savings Bank in Chinatown, now a party venue, is to be sold for $26 million to private equity firm SC Holdings headed by Jason Stein. Photo: Google
Jason Stein, through SC Holdings, a private equity firm he c0-founded, is about to be the new owner of Bowery Savings Bank Building, which is recent years has been a party venue site run by Capitale NYC. Photo: Linked In.
The Bowery Savings Bank Building, now a glittery party venue, which the previous owners put into bankruptcy last year, is reportedly under contract to SC Holdings for a $26 million.
The problem has long been in the works. Pincus was the first to report that the building that private equity firm SC Holdings agreed to acquire for $26 million a year ago, is finally under contract.
The problems at the venue began when its only tenant, Capital NYC, began missing rent payments in 2020 shortly after COVID-19 shutdowns derailed the big public gatherings that used to be staged in the 40,000 sq. ft venue that was designed by the architect Stanford White. Since 1980, the bank building has been on the National Registry of Historic Places.
Two brothers, David and Michael Marvisi, who owned it through the holding company 130 Acquisition Corp. since 2017 put it into bankruptcy last year in order to avoid a forced auction. Wells Fargo had reportedly sued the establishment, claiming it was in default on a $12 million loan.
On August 2, 2023, in bankruptcy court, the current owners filed the motion to sell the property free and clear of any liens.
Dawn Kirby, an attorney at Kirby, Aisner & Curley had not returned a call by presstime.
The brothers are taking a big haircut on their investment which they purchased in 2017 for $33 million and tried to sell two years later for $50 million but pulled it off the market without a sale.
Earlier this year, the Marvisi brothers had again listed the property for sale for $35 million. When the brothers initially defaulted on their loan at the height of COVID-19 shutdowns, it forced the defaulted loan interest rate to jump to 9.8 percent. Michael Marvisi had reportedly personally guaranteed the loan.
But according to the bankruptcy court, on Aug. 2, 2023, the company filed On August 2, 2023, in bankruptcy court, filed a motion “to sell the property free and clear of any liens.”
SC Holdings is a global private investment firm founded by Jason Stein and the Eastbridge Group. According to Bloomberg, the company “focuses on investing in sports and entertainment, multi-unit retail, commercial real estate, technology, and consumer sectors.”
Jason Stein could not be reached and an email to SC Holdings had not been returned at presstime.
The two partners, David and Michael Marvisi had purchased the property