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Bowery Has Common Ground

$2.5 Million Deal Closed
By Karen-Ann Mulzac
May 23, 2002 | 12:32 P.M.

Common Ground Community purchased 197 Bowery, the Andrews Hotel, from 1 Bowery Inc. The 6-story, 17,508-square-foot, single-room occupancy (SRO) hotel sold for $2.5 million, which is approximately $142 per square foot. The buyer is a non-profit group that has provided housing and support services for homeless adults in Manhattan for the last 10 years. Reportedly the property was not on the market at the time of sale and the buyer approached the seller directly. Industrial Bank of Japan provided a $2.1 million bridge loan. HUD's Supportive Housing Program, and Deutsche Bank Americas Foundation plan to give grants and interest-free loans to help defray operating costs over the next few years. Common Ground will rehabilitate the property and offer nightly rooms for $7 a night, making it one of the last SRO's on Bowery. The buyer and seller represented themselves in this transaction.

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