News: Jay-Z's Hotel Project Frozen, Investors Struck By Financial Crisis
Monday, Dec 29, 2008 3:50PM
Jay-Z and his real estate partner Charles Blaichman are not immune to economic woes as their $66 million New York City hotel project has been put on hold for lack of funding.
Blaichman, most known for his developments in lower Manhattan, is having trouble financing a pair of hotel projects including West Village's Perry Street Hotel and West Chelsea's J Hotels, which was a partnership he made with the hip-hop mogul last year.
"It's one of the greatest stretches of undeveloped areas," Blaichman told the Times. "I still think it's going to take off."
However, with the recent financial crisis across the nation, Blaichman continues to search for an funds to complete the project.
As SOHH previously reported, Jay-Z invested in the former Time Warner Cable warehouse to create J Hotels in the West Chelsea area. Teaming with partners Blaichman, Abram Shnay and Scott Shnay, they reportedly shelled out around $66 million for the area which included the mid-block parcel and air rights.
The purchase gave them the ability to build up to 12 stories, according to the New York Post.
In related news, the "King of New York" has been nominated for six nominations at the upcoming Grammy Awards ceremony in California.
Jay-Z has received nods in various categories including "Best Rap Solo Performance" for his hit record "Roc Boys (And The Winner Is...)" from last year's American Gangster.
The 51st Grammy Awards is scheduled to air Sunday, February 8, 2009 from the Staples Center in Los Angeles, California.