Real estate investors turning attention to Manhattan hotels.
Cushman & Wakefield's Hospitality Group and New York Capital Markets Group represented Alchemy Properties in the sale of the Sutton Hotel.
The newly renovated property is a historically significant, all-suite hotel on East 56th Street in the upscale Sutton Place neighborhood on Manhattan's East Side. The Sutton boasts a long history of notable guests, including Nathanael West, the author of "The Day of the Locust." The new owners of the property, Korman Communities, will maintain the Sutton's historical market position by accommodating the luxury sector of the long-term and extended-stay markets in Manhattan.
Cushman & Wakefield's Hospitality Group also represented PMG in the recapitalization of Hotel 57 and Thirty Thirty. Hotel 57 is located in the retail and commercial epicenter of Manhattan's East Side on the corner of East 57th Street and Lexington Avenue. The hotel has been totally reconfigured and renovated, positioning the property as a prominent new entrant into Manhattan's burgeoning collection of intimate, high-design lodging experiences. Hotel 57 is home to Opia, one of the East Side's hottest restaurants, as well as an array of other upscale retail tenants.
Thirty Thirty, located at 30 East 30th Street, is the most significant hotel in the Madison Square district in lower Midtown. Located a few blocks north of Madison Square Park and the Flatiron Building, the hotel lies in the center of one of the most vibrant neighborhoods in Manhattan. Upscale residential conversions are rife throughout the surrounding blocks, and the restaurant and nightlife scene is well established. Thirty Thirty will ultimately enter the market as one of the most attractive hotels in New York, with the guest experience enhanced by newly renovated rooms and expansive lobby-level public spaces, which are the largest of any similarly sized hotel in the market.
"Considered separately, these three assets generated significant interest from hotel companies, REITs and other real estate investors, both domestic and international," said Tom McConnell, senior managing director of Cushman & Wakefield's Hospitality Group. "Collectively, these transactions are an excellent example of the continued strength of New York's late-decade lodging market, and the desirability for New York hotels by the real estate investment community. Last year, each of these sales would likely have been to a residential converter, but that is no longer the case as hotels vie with office buildings as Manhattan's premier asset class."
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|Publication:||Real Estate Weekly|
|Date:||Dec 20, 2006|
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