Ashkenazy, Deka put Marriott East Side on the market

Pair paid $270M for the property in May 2015

TRD New York /
Sep.September 30, 2016 08:03 AM

Ashkenazy Acquisition and Deka Immobilien put the New York Marriott East Side hotel on the market a mere 17 months after buying.

A source told the Commercial Observer that the sellers are unlikely to get more than the $270 million they paid for The 525 Lexington Avenue property in May 2015, thanks to a slowing hotel market.

Built in 1924, the landmarked building spans 319,319 square feet and includes 655 hotel rooms and the 525LEX restaurant. According to offering materials, the building “benefited from $56 million ($85,000 per key) of recent capital expenditures.”

Colliers International TRData LogoTINY has the listing. Ashkenazy and Deka bought the hotel from Morgan Stanley’s Prime Property Fund, which had paid $287 million for the building in 2005.

In June, The Real Deal examined New York’s hotel sectors to see how they’re staying competitive in an overbuilt market. [CO]Konrad Putzier

Related Articles

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

Mensur Cekic, Hudson Yards’ director of residences

From private tutors to meditation sessions, inside NYC’s new amenities battle

Lightstone Group CEO David Lichtenstein and Moxy Chelsea at 105 W 28th Street (Credit: Lightstone and Facebook)

Lightstone gave its neighbors $7M to build a hotel. Then the neighbors secretly went to war, suit claims.

Here are the numbers behind Michael Dell’s record purchase of the Boca Raton Resort

Long Island’s hotel market could be headed for a downturn

This obscure Caribbean island is a favorite among the super wealthy

Manhattan hotel at center of 1MDB fraud case lands $615M refinancing