Thor in contract to buy Soho’s James hotel for $70M: sources

Prudential selling five-star property at a $13M loss

New York /
Sep.September 02, 2016 10:50 AM

Joseph Sitt’s Thor Equities is in contract to buy the trendy James New York hotel in Soho for $70 million, or $614,000 per key, sources told The Real Deal.

At a time when the city’s hospitality market is soft and dozens of hotels are up for sale but few have traded, PGIM Real Estate, formerly known as Prudential Real Estate Investors, is selling the 114-key, five-star hotel at a loss.

Prudential acquired the property in 2013 for $83.4 million from Brack Capital Real Estate, which developed it in 2010.

The 20-story hotel, located at 27 Grand Street, also has frontage on Sixth Avenue and Thompson Street. The hotel features restaurant David Burke Kitchen and rooftop lounge Jimmy.

A source familiar with the negotiations said Thor is seeking $5 million to $10 million to flip the contract to another firm that would ultimately close on the purchase. That firm, one source said, could be Aby Rosen’s RFR Holding, though TRD couldn’t verify that claim. Representatives for RFR declined to comment.

Jeffrey Davis, who runs JLL’s New York hospitality division, is brokering the deal.

Prudential and JLL declined to comment, while Thor could not be reached.

There are more than 30 New York City hotels currently on the market, including the Park Hyatt at Extell Development’s One57. In the first seven months of 2016, there were only two hotel sales for $200 million or more – a far cry from the nine hotel sales over the same period in 2015, according to Real Capital Analytics. 

A source said a hotel like the James New York has limited upside. “The repositioning of the food-and-beverage component into retail is not likely possible as the location has little foot traffic,” the source said.

A man was found dead Monday at the James New York hotel of a suspected drug overdose, DNAinfo reported.

The other James hotel, a four-star property, is in Chicago.


Related Articles

arrow_forward_ios
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
Larry Korman and Joe Lubeck (iStock)
Electra America, AKA launch $500M hotel fund
Electra America, AKA launch $500M hotel fund
(Photo illustration by The Real Deal)
Underwater hotel owners are walking away from their properties
Underwater hotel owners are walking away from their properties
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
Heritage Equity Partners' Toby Moskovits and the Williamsburg Hotel at 96 Wythe Avenue (Moskovits via Sasha Maslov; Hotel via Williamsburg Hotel)
Toby Moskovits’ Williamsburg Hotel enters bankruptcy
Toby Moskovits’ Williamsburg Hotel enters bankruptcy
ASAP Holdings CEO Frank Yuan and LaGuardia Marriott
LaGuardia Marriott and development site combo sell for $100M
LaGuardia Marriott and development site combo sell for $100M
525 Lexington Avenue and Deka bank CEO Michael Rüdiger (Photos via Google Maps, Getty Images)
German lender forecloses on East Side Marriott hotel
German lender forecloses on East Side Marriott hotel
Jeff Bezos of Amazon, Joe Sitt of Thor Equities and an aerial of the Red Hook site. (Getty, Thor, Google Maps)
Thor Equities nabs financing for Amazon warehouse in Red Hook
Thor Equities nabs financing for Amazon warehouse in Red Hook
arrow_forward_ios

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

Loading...