Barry Sternlicht’s Starwood Capital is in contract to buy a 34th Street retail building with significant future development potential for $250 million, The Real Deal has learned.
The site on which the property sits could be redeveloped into a 300,000-square-foot retail and hotel tower, using unused air rights, sources said.
The 78,000-square-foot building, at 144-150 West 34th Street opposite Macy’s department store, has been owned for almost two decades by the Kefadilis family, which heads KLM Construction company.
It is currently occupied by retail tenant Old Navy, which has another six years on its lease.
Doug Harmon and Adam Spies of Eastdil Secured represented both parties in the deal, which is expected to close this month. When contacted by The Real Deal, Harmon declined to comment on the transaction.
The deal has been in contract since December 2013, sources said.
Neither Starwood nor a representative of the Kefadilis family could immediately be reached for comment.
Sternlicht, known for his luxury hotel investments, has reportedly been looking to sell off shares of Starwood in an initial public offering in order to raise funds and finance new businesses.
The company is involved in luxury Manhattan residential projects like the Baccarat Hotel & Residences New York, which is currently in sales mode, and a 65-story rental at 252 East 57th Street, for which it issued a $450 million loan earlier this year.