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Morgan Stanley retained to sell Kalikow's Millenium.

The hospitality group of Morgan Stanley has been retained to seek buyers for the Hotel Millenium, sources confirmed.

The Downtow 561-room luxury hotel is part of developer Peter Kalikow's holdings and is said to be priced in the $125 million range.

Kalikow is in the middle of working out his various financial holdings through a bankruptcy action. The banking consortium that lent on the Millenium property, including Chase, Citibank and Chemical Bank, hired Peter Krause, the Morgan Stanley hospitality group principal, to shop the deal. They are said to be relying on the construction costs as a guideline.

"This is definitely not a fire-sale, said a spokesperson. "The asking price is a fair price for a top quality brand-new hotel ideally situated for business in the Wall Street area."

Known as a business hotel, the 58-story hotel has 546 guest rooms and 15 suites with three deluxe suites on the 55th floor. Rooms feature king-sized beds, data ports and in-room computers as well as two-line telephones. The Talesin restaurant seats 120, and there is 3,500 square feet of meeting rooms, a fitness center and swimming pool.

Hotel consultant Stephen W. Brener said there is a demand for good hotels but the purchasers are very conscious of a return on their investment. Brener said: "If you're going to sell anything ... you are looking at liquidation value. Trophy properties are not in demand at this point."

Sources contend that Kalikow would like to keept the hotel and if the lenders do not get their price, it is conceivable that another kind of deal might be worked out.
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Title Annotation:real estate developer Peter Kalikow, Hotel Millenium, New York, New York
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Mar 3, 1993
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