The 40-year-old model, who parted ways with her bodyguard boyfriend Martin Kirsten last month, was spotted getting cozy with Schnabel, reported Ace Showbiz.
"They were all over each other. They were getting cosy on the dance floor. They are definitely an item. You could tell that they were in the moment," a source said.
"He got there earlier and got everything set up, then she came. They were getting cosy almost all night and stayed there almost until close. They were both enjoying themselves," the source added.
Schnabel, who is the son of artist and filmmaker Julian Schnabel, was spotted wearing gray sweater, black pants and tennis shoes.