The Real Deal New York

Ashkenazy, Deka put Marriott East Side on the market

Pair paid $270M for the property in May 2015

September 30, 2016 08:03AM

From left: Ben Ashkenazy and the New York Marriott East Side on Lexington Avenue

From left: Ben Ashkenazy and the New York Marriott East Side on Lexington Avenue

Ashkenazy Acquisition and Deka Immobilien put the New York Marriott East Side hotel on the market a mere 17 months after buying.

A source told the Commercial Observer that the sellers are unlikely to get more than the $270 million they paid for the 525 Lexington Avenue property in May 2015, thanks to a slowing hotel market.

Built in 1924, the landmarked building spans 319,319 square feet and includes 655 hotel rooms and the 525LEX restaurant. According to offering materials, the building “benefited from $56 million ($85,000 per key) of recent capital expenditures.”

Colliers International TRData LogoTINY has the listing. Ashkenazy and Deka bought the hotel from Morgan Stanley’s Prime Property Fund, which had paid $287 million for the building in 2005.

In June, The Real Deal examined New York’s hotel sectors to see how they’re staying competitive in an overbuilt market. [CO]Konrad Putzier

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