1,300-foot tall condo to rise at Drake Hotel site

New York /
Oct.October 19, 2011 08:46 AM
alternate
text
From left: CIM Group founders Avi Shemesh, Richard Ressler and Shaul Kuba and the Drake Hotel

The site of the former Drake Hotel, recently named the most valuable development lot in the city, will be home to a 1,300-foot tall residential tower, the largest in the city.

According to the Wall Street Journal, CIM Group, which acquired the site for $305 million last year, and Harry Macklowe plan to erect a slim condominium and retail complex designed by Uruguayan-born architect Rafael Vinoly with 128 units and 12-foot high ceilings. The $1 billion project, at 432 Park Avenue near 56th Street, includes a 5,000-square-foot driveway, golf training facilities and private dining and screening rooms. Macklowe has no equity in the project but has remained involved in the decision making.

Though financing hasn’t been secured and there’s no scheduled completion date, CIM is confident it can get a $700 million construction loan. The private equity firm has $9.5 billion under management, and its Urban Real Estate Fund has an annual return of 7.4 percent compared to a 20 percent annual decline for similar high-risk funds.

It has recently purchased apartment buildings in Dallas, a South Beach hotel, the William Beaver House in the Financial District, a loan backed by the Trump Soho and 11 Madison Avenue. The Journal attributed the spree to the firm’s cautious approach from 2006 to 2008 that left it minimal exposure to inflated property values. Though private equity firms rarely develop ground up, CIM’s partners got their start as developers, the Journal reported. [WSJ]


Related Articles

arrow_forward_ios
News of President-elect Biden’s $1.9T stimulus plan held promise for employment and economic activity. (Getty)

Real estate stocks hold gains even as market doesn’t

Real estate stocks hold gains even as market doesn’t
Photo illustration of Aliz Hotel at 310 West 40th Street (Google Maps)

From lender with love: Bond-themed hotel sued for $40M

From lender with love: Bond-themed hotel sued for $40M
Chelsea Hotel with Ira Drukier and Richard Born (Getty)

Chelsea Hotel reno can resume after housing department drops fight

Chelsea Hotel reno can resume after housing department drops fight
325 West 33rd Street and Magna Hospitality CEO Robert Indeglia (Google Maps; Magna Hospitality)

Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M

Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M
Hilton Hotel in Times Square (Google Maps)

Hilton Times Square owner: “Take my hotel, please”

Hilton Times Square owner: “Take my hotel, please”
Some restaurants and hotels are partnering up to offer private dining in empty rooms, in an attempt to survive the economic fallout of the pandemic. (iStock)

Hotels turn empty rooms into private dining suites

Hotels turn empty rooms into private dining suites
Renderings of 159 Broadway in Williamsburg and Tillary Hotel at 85 Flatbush Avenue in Downtown Brooklyn (Photos via Stonehill Taylor; The Tillary Hotel)

Two Brooklyn hotel projects file for bankruptcy in one week

Two Brooklyn hotel projects file for bankruptcy in one week
City planning chairperson Marisa Lago (iStock; Global Philanthropy Forum)

NYC moves forward with plan for special hotel permits

NYC moves forward with plan for special hotel permits
arrow_forward_ios

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

Loading...