Drake hotel site sells for $305 million

By Adam Pincus | January 28, 2010 12:17PM

An entity affiliated with California-based investment firm CIM Group purchased the former Drake Hotel site at Park Avenue and 56th Street for $305 million from Macklowe Properties.

The Wall Street Journal reported earlier this month that CIM Group and Macklowe Properties were in discussions to buy back the debt at a discount.

Macklowe Properties bought the original site for $418 million, and loaded it up with loans valued at $543 million, city property records show.

The property transfer does not indicate whether Macklowe Properties is a partner in the new ownership entity, CIM/56th Street LLC.

CIM Group closed on the purchase of the vacant property with addresses at 434 Park Avenue and 38, 40, 44 and 50 East 57th Street, on Jan. 20, city property records show.

The sale ends a complex battle for the loans on the property. German lender Deutsche Bank filed to foreclose on $482 million in loans in August 2008. Then lender iStar Financial tried to sell a $224 million first position debt for $160 million, but could not find a buyer last year.

A spokesperson for Macklowe Properties said the company declined to comment.