Billionaire Charney sells Midtown hotel site to national giant

TRD New York /
Nov.November 14, 2011 03:41 PM

Billionaire Leon Charney, has sold a development site at 120 West 41st Street to Stanford Hotels, a source close to the deal told The Real Deal. 

Stanford, which operates Hilton, Marriott and Sheraton hotels all over the country, paid $19.5 million for the property in a deal that closed late Thursday, the source said. The company is said to be planning a 125-room hotel on the site, assembling air rights from a nearby theater. The acquisition is Stanford’s first foray into the New York market.

Charney, a real estate developer who was once President Jimmy Carter’s foreign policy adviser, had been planning a 22-story, $90 million boutique hotel at the site under an agreement with Minnesota-based Graves Hospitality. He and his partners in Charney-FPG purchased the property in 2007 for $20 million, but the project fell behind schedule due to the economic downturn and Charney falling seriously ill.

George Comfort & Sons represented Charney-FPG in the deal, which has not yet hit public record, while the Corcoran Group represented Stanford.

Representatives for George Comfort and Corcoran were not immediately available for comment. A person who answered the phone at Charney’s office confirmed the building had been sold but declined to comment further.

Charney was sued earlier this year by Malkin Properties for allegedly reneging on a deal to buy a $22 million mezzanine loan on Charney’s Midtown office tower at 119 West 40th Street, almost a year after the property was placed under a court-appointed receiver. It was not immediately clear if that suit had been resolved. 

Related Articles

181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Optera Capital's Glenn Alba, AWH Partners' Russ Flicker and a rendering of 88 Schermerhorn Street

Downtown Brooklyn is getting another Hilton

Union Square W Hotel at  201 Park Avenue South (Credit: Wikpedia)

Marriott buys Union Square W Hotel

OYO Hotels CEO Ritesh Agarwal and OYO Townhouse in Dallas, Texas (Credit: OYO Hotels and Getty Images)

Indian hotel startup to launch in NYC, LA with $300M US investment

From left: Hilton Worldwide Holdings CEO Christopher Nassetta, the Waldorf Astoria at 301 Park Avenue, and China President Xi Jinping (Credit: Getty Images)

Hilton chief talks China, the Waldorf Astoria and tipping at NYU hospitality conference

Lyric founders Andrew Kitchell and Joe Fraiman and a Lyric-managed unit in Houston

Startups and hospitality giants are embracing “apartment hotels”

George Comfort’s Matt Coudert and 498 7th Avenue (Credit: LinkedIn and Google Maps)

Engineering firm inks 60K sf deal in the Garment District

Marriott to enter home-sharing business

Marriott to enter home-sharing business