Witkoff and Mubadala to split proceeds from Park Lane Hotel sale

Sellers are hoping to received bids of more than $1B

TRD New York /
May.May 23, 2017 11:05 AM

Steve Witkoff TRData LogoTINY and the U.S. Justice Department are moving forward with the sale of The Park Lane Hotel in a deal that cuts out majority owner Jho Low.

Witkoff and Mubadala Development Corp., an Abu Dhabi sovereign wealth fund that bought a portion of Low’s stake, will split the proceeds of the sale, while the government will take Low’s share, the New York Times reported. Marketing books for the property are expected to be released this week, and the sellers are hoping for bids that exceed $1 billion.

“This was the best site in New York City and maybe the world,” Witkoff told the Times. “We designed what the entire partnership thought was a beautiful building. Little did we know we’d face circumstances like this.”

Eastdil Secured is handling the sale.

Low, who provided most of the equity for the $654 million acquisition of the 26-story hotel in 2013, is at the center of a money-laundering scandal. He’s accused of illegally diverting hundreds of millions of dollars from a Malaysian investment fund known as 1MBD to investment in real estate, including The Park Lane. He’s denied wrongdoing. [NYT] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Sam Chang and TownePlace Suites by Marriott at 324 West 44th Street (Google Maps)

Hotelier Sam Chang’s businesses snagged millions in PPP loans

Hotelier Sam Chang’s businesses snagged millions in PPP loans
Vornado CEO Steven Roth with 1535 Broadway and 220 Central Park South (Getty, VNO, Google Maps)

Vornado sees $100M retail JV loss, $190M in 220 CPS gains

Vornado sees $100M retail JV loss, $190M in 220 CPS gains
Gov. Andrew Cuomo (Getty, iStock)

Commercial eviction and foreclosure ban extended until January

Commercial eviction and foreclosure ban extended until January
The Manhattan office market’s overall vacancy rate rose to a 24-year high of 13.3% in the third quarter (iStock)

Cushman & Wakefield paints bleak picture for Manhattan office market

Cushman & Wakefield paints bleak picture for Manhattan office market
Travis Kalanick (Getty; iStock)

Travis Kalanick cooks up a real estate empire

Travis Kalanick cooks up a real estate empire
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Subversive CEO Richard Acosta (Photos via ICSC; iStock)

Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Riding high: Inception, Subversive to launch publicly traded cannabis REIT
arrow_forward_ios

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

Loading...