Remember the Hudson Hotel? Back in the day, it was an absolute nightlife hotspot after a massive $125 million renovation in 2000. Sadly, the pandemic forced its permanent closure in 2020.
Now, its planned rebirth as a luxury apartment complex has hit a major roadblock.
The property’s current owners officially filed for chapter 11 bankruptcy protection on October 22, 2025. The filing follows a highly chaotic series of events that ultimately halted a massive $440 million residential conversion.
From a glitzy boutique hotel to a halted construction zone
The grand plan was to transform the shuttered 878-room hotel into 440 market-rate rental apartments. The developers, CSC Real Estate, took over a 99-year ground lease in May 2022. They secured a $207 million loan from Parkview Financial to get the project off the ground.
But things quickly went south. By mid-2025, Parkview Financial sued the developers for alleged mismanagement. The lender eventually foreclosed on the equity interests in July 2025, taking total control of the stalled project.
The ongoing battle with remaining tenants
A major piece of this puzzle involves the building’s permanent residents. The property still houses 32 single room occupancy (SRO) units occupied by 46 people, many of whom are low-income seniors.
When internal demolition began in 2022, these tenants reported living in active construction zones without consistent heat or hot water. The city’s Housing Preservation Department stepped in, finding reasonable cause to believe tenant harassment had occurred.
Because of this, the city denied the owners a crucial Certificate of No Harassment. This triggered a Department of Buildings stop-work order in February 2024, legally halting construction on all occupied floors.
What happens next to the 99-year lease?
The recent bankruptcy filing is a strategic attempt to save the project and avoid losing the property entirely. The ground lessor is currently threatening to terminate the 99-year lease, citing multiple construction delays and unpaid rent.
For now, the future of this historic West 58th Street building remains completely in limbo. We will be keeping a close eye on the court proceedings to see if this ambitious housing conversion can actually be saved.
