Rosen buys the Paramount Hotel for $275M

TRD New York /
Jun.June 08, 2011 08:27 AM

Adding to a portfolio that includes the Seagram Building and Lever House, developer Aby Rosen’s RFR Holding has bought the Paramount Hotel for $275 million from Walton Street Capital and Highgate Holdings, according to the Wall Street Journal. The deal is expected to close in the third quarter of 2011.

RFR had an incentive to buy, the Journal said, taking advantage of a tax law by reinvesting proceeds from a recent sale to defer a capital-gains payment.

The 597-room hotel, situated at 235 West 46th Street between Broadway and Eighth Avenue, was transformed in the 1980s by hotelier and then-owner Ian Schrager and designer Philippe Starck into a fashionable Manhattan nightspot. It underwent a $40 million renovation and received landmark status in 2009.

The hotel faces stiff competition from large hotels around Times Square. It is currently offering rooms starting at $259 a night for a Saturday night stay, relatively cheap for a prime location.

Last month, it was reported that Rosen and his business partner Michael Fuchs were running into difficulties with some of their former partners. [WSJ]

Related Articles

Alex Sapir and the NoMo Soho hotel at 9 Crosby Street (Credit: NoMo SoHo)

Sapir Corp.’s stock drops in Tel Aviv

Brookfield's Rick Clark and RFR Realty's Aby Rosen with the Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)

Aby Rosen makes it two Lever House lawsuits in two weeks

181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Aby Rosen and Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)

Aby Rosen says Tod Waterman stabbed him in back on Lever House deal

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M