Trio shells out $200M for hotel portion of 1568 Broadway

New York /
Aug.August 01, 2017 07:00 PM

Maefield Development, Fortress Investment Group and L&L Holding have purchased the hotel portion of 1568 Broadway for $200 million.

JPMorgan Chase provided $75 million for the purchase, according to documents filed with the city’s Department of Finance. The bank previously provided $175 million in financing on the hotel portion of the building. The 47-story building houses a Double Tree Hotel and the historic Palace Theater, the latter of which is still owned by the Nederlander Organization.

Maefield acquired the leasehold stake in the hotel in 2015, paying Sunstone Hotel Investors $540 million. The deal was valued at just over $1.15 million per key. Fortress has been involved with the property for some time, but L&L Holding is a new equity partner, a source familiar with the partnership said. L&L’s stake in the hotel wasn’t immediately clear and representatives for the company could not immediately be reached for comment.

Maefield is redeveloping the property, in partnership with Nederlander, to create a 704-key boutique hotel. Last year, the New York City Landmarks Preservation Commission approved plans to elevate the 100-plus-year-old Palace Theater by 29 feet in order to make room for new retail and entertainment space.


Related Articles

arrow_forward_ios
WeWork CEO Sandeep Mathrani (Getty Images, WeWork)
WeWork stock has taken a WeDive. Will it resurface?
WeWork stock has taken a WeDive. Will it resurface?
Cartier's Cyrille Vigneron and 653 Fifth Avenue (Cartier, Linkedin, Getty)
Cartier betting on appetite for luxury with US retail expansion
Cartier betting on appetite for luxury with US retail expansion
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
SL Green chairman Marc Holliday and One Madison Avenue (Getty Images, SL Green Realty Corp)
Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
Leslie Alexander with 1117 Main Road in Riverhead (top) and 2045 Sound Avenue in Mattituck (Getty, Compass)
Leslie Alexander lists pair of North Fork properties with development rights
Leslie Alexander lists pair of North Fork properties with development rights
(Photo Illustration by The Real Deal with Getty Images)
Office occupancy stalls after Labor Day push
Office occupancy stalls after Labor Day push
A photo illustration of 1776 Nostrand Avenue (Getty Images, Google Maps)
Flatbush landlord sentenced in deadly space heater fire
Flatbush landlord sentenced in deadly space heater fire
Tankhouse’s Sam Alison-Mayne with 452 Union Street (Facades Plus, Google Maps, Getty)
Multifamily deals dominate strong week of NYC i-sales
Multifamily deals dominate strong week of NYC i-sales
arrow_forward_ios

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

Loading...