Istithmar World Capital, the investment arm of the Dubai government, has defaulted on its $300 million mortgage on the former Knickerbocker Hotel site in Times Square and turned the property over to its lender, according American financial magazine.
Istithmar bought the building, formerly known as the Knickerbocker Hotel, in New York’s Times Square for $300 million in June 2006, during the firm’s heyday when it was on the acquisition trail.
LEM Mezzanine took control of the W New York Union Square hotel from Istithmar in December for $2 million in a New York foreclosure sale.
Istithmar also has the W Washington D.C. and Mandarin Oriental New York in its portfolio.
