The Divine Riviera Hotel at 169 Clinton Ave. in Newark — Courtesy: LRES
By Joshua Burd
A joint venture led by KS Group has purchased a historic and culturally significant hotel in Newark’s Central Ward, in a newly announced deal by Logistics Real Estate Services.
The partnership, which also includes Jeff Blau and Pride Investment Group, paid $8.5 million for the 101-year-old Divine Riviera Hotel, which houses 220 rooms across eight stories. The building at 169 Clinton Ave. changed hands in a deal involving an undisclosed seller, marking the first trade of the property in 17 years.
“Once we secured this assignment, we knew that there would be no shortage of buyers lining up to bid on this historic Newark gem,” LRES’ Ryan Cerqueira said. “We’re excited for the future of the hotel under its new stewardship and look forward to its restoration as a pillar in Newark’s Old Third Ward.”
Cerqueira and John Marzano represented both parties, adding that the buyer’s plans for the 100,000-square-foot structure are unknown. An October report by Jersey Digs noted that the hotel has served as a rooming house in recent decades, while city officials denied a developer’s proposal to convert it to apartments, citing excessive density in the plan.
The brokerage team noted last week that the hotel, built in 1922, was a significant player in the desegregation of the local and national hotel system. The property has seen several high-profile owners throughout its tenure, including the Rev. Major J. Divine, a civil rights activist whose role in desegregating the United States lodging system began with the $550,000 cash purchase of the Riviera Hotel in 1959.
“It was an honor to participate in the transaction of an asset with so much history,” Cerqueira added. “We look forward to its continued success.”
KS Group, led by Daniel Spiegel and Yehuda Kotkes, is active in Newark and recently delivered 52 units across two buildings on Market Street. The firm has 360 residential units under construction in the city and some 2,000 in its development pipeline.