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

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

TRD 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
Thor Equities' Joe Sitt and a closeup of 545 Madison Avenue (Credit: Google Maps)

Thor Equities loses 545 Madison Avenue

The Chicago condo deconversion craze is dying

Clockwise from left: 270 Richards Street in Brooklyn, 72-01 Queens Boulevard in Queens, and 2069 Bruckner Boulevard in the Bronx (Credit: Thor Equities, EDI International, and Azimuth)

The top 10 biggest real estate projects coming to NYC

Joe Sitt and 1725 Shore Parkway in Bensonhurst (Credit: Google Maps)

Thor sells Bensonhurst big-box store for $75M

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

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

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

545 Madison Avenue and Thor Equities CEO Joe Sitt (Credit: Google Maps)

Thor Equities on the verge of losing another building in Manhattan

AOC unveils rent regulation plan, Hong Kong real estate stocks are sinking: Daily digest

arrow_forward_ios