Morgan Stanley’s Prime Property Fund has put its New York Marriott East Side on the block for $350 million. The fund hired Eastdil Secured to market the 646-room hotel, at 525 Lexington Avenue and 49th Street, the Wall Street Journal reported.
The fund acquired the hotel in late 2005 for $287 million and spent an additional $26 million on renovations. The property is completely debt free and has a net operating income of $10 million to $11 million, which is about half of what it took in during the boom, the Journal said.
The hotel has a long-term management agreement with Marriott, but Prime Property has secured approval to conver the 16th floor concierge lounge into 10 additional suites. [WSJ, 1st item] – Adam Fusfeld