After New York City effectively outlawed new hotel construction without a special council permit—and barred short-term Airbnb rentals—every existing 140-key hotel in NoMad became a protected species. Tyler Morse's MCR Hotels seized on that supply moat, paying $52 million ($371,429 per key) for the 16-story boutique property at 31 East 28th Street between Madison and Park Avenue South. When the deed closed on February 26, 2026, MCR Hotels (Tyler Morse) had officially taken down 31 East 28th Street from Highgate Holdings and Cerberus Capital Affiliate for $52 million, with JLL Hotels & Hospitality brokering the trade.

Look past the headline figure and the story is all about the basis reset. The 76,000-square-foot building last traded in November 2018 for $64 million. Stepping in at $684 a square foot—or $371,429 a key across its 140 rooms— shaves 18.8 percent off that prior valuation, giving MCR Hotels (Tyler Morse) a margin of safety that would have been unthinkable at the top of the cycle. Even better for the buyers, the in-place rent roll hands them a verified 8.50 percent going-in cap rate from day one.

Starwood Writes 65% LTV on an 8.5% Cap Hotel

The real tell in any Manhattan closing sits on the debt side of the ledger. To fund the purchase, MCR Hotels (Tyler Morse) locked in a $33.8 million senior hospitality acquisition & capex facility from Starwood Property Trust at 65 percent loan-to-value.

That loan commitment meant the buyers only needed to write a $18.2 million equity check to control a 16-story, 2017-vintage NoMad asset. Credit committees aren't stretching to 75 percent leverage anymore, but when a sponsor brings $18.2 million of real cash equity and a basis of $684 a square foot, lenders like Starwood Property Trust are wide open for business.

From Our Desk

When we look at 31 East 28th Street on our placement desk at Light Tower Group, the lesson for New York sponsors comes down to the marriage of entry basis and lender selection. MCR Hotels (Tyler Morse) didn't try to fight the tape—they bought NoMad footage at $684 a square foot and paired it with the exact lender bucket built for this business plan. With Local Law 18 choking off Airbnb and zoning rules blocking new hotel towers, buying modern NoMad keys at $371,000 a room and an 8.5 percent cap rate is one of the highest-yielding plays in Manhattan.