Dubai’s Istithmar World Capital hands in the keys to former Knickerbocker Hotel

New York /
Mar.March 03, 2010 10:04 AM

Istithmar World Capital, the investment arm of the Dubai government, has defaulted on its $300 million mortgage on the former Knickerbocker Hotel site in Times Square and turned the property over to its lender. Istithmar had been planning to convert the site’s 300,000-square-foot office building back into a high-end hotel, and now that Dubai is out of the picture, vulture investors are reportedly chomping at the bit to take the helm at a steep discount. The lender, Danske Bank A/S, hired Jones Lang LaSalle to market the property, and the brokerage’s Ben Singer said interest has been high. One such interested bidder is said to be Sitt Asset Management, which owned the building before Istithmar bought it in 2006. Istithmar had stopped renewing leases in the office building there, known as 1466 Broadway, and had also purchased an adjacent vacant lot for $76 million, as part of its hotel conversion plan. The building is now almost 50 percent vacant, according to research firm CoStar. Dan Fasulo, managing director for Real Capital Analytics, said the property would be best-used as a hotel. He said the first mortgage note is valued at $290 million, though the property could be worth less than that because it is in need of renovations. [WSJ]


Related Articles

arrow_forward_ios
Ben Hakimian and Naveen Shah of Navika Capital Group (Navika Group of Companies, LoopNet, iStock, KSU)
Hakimian sells hotel at 75 Wall Street
Hakimian sells hotel at 75 Wall Street
Future City Newsletter
Future City: JLL’s latest proptech play; Entrata chairman ousted
Future City: JLL’s latest proptech play; Entrata chairman ousted
The home to th Oriental Mandarin Hotel at Columbus Circle (Google)
Mandarin Oriental NY majority stake sells for $98M
Mandarin Oriental NY majority stake sells for $98M
Midtown DoubleTree sells at staggering loss
Midtown DoubleTree sells at staggering loss
Midtown DoubleTree sells at staggering loss
From left: Sharad Rastogi, president, JLL Technologies and Zachary Denning, chief executive officer (JLL Technologies, Hank, iStock)
JLL buys cloud-based building management platform Hank
JLL buys cloud-based building management platform Hank
Out of many, one: Inside proptech’s record year of M&A
Out of many, one: Inside proptech’s record year of M&A
Out of many, one: Inside proptech’s record year of M&A
6R Capital Realty's Shai Shamir with 70-74 Warren Street (left) and 80-88 West Broadway (IAC, Google Maps)
As Brack Capital shutters in NY, former CEO bets on Tribeca
As Brack Capital shutters in NY, former CEO bets on Tribeca
45 West 81st Street (Google Maps)
Shuttered Excelsior Hotel sold for $80M
Shuttered Excelsior Hotel sold for $80M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...