Hong Kong investor to buy Standard Hotel at discount

Famed hotel went into contract for $400M in 2014

New York /
Aug.August 08, 2017 09:00 AM

A Hong Kong real estate powerhouse is in late-stage talks to buy the Standard Hotel along the High Line.

If the deal goes through, Gaw Capital Partners would pay $340 million for the property, 15 percent less than what the hotel was in contract to sell for in 2014, the New York Post reported.

In 2014, hotel management company Standard International went into contract to buy the hotel for $400 million from Dune Capital Management and Greenfield Partners. The deal, however, never went through.

The decline in price can be attributed to a number of factors, including the over-saturation of the city’s hotel market and greater competition from the likes of Airbnb. Cushman & Wakefield’s Tom McConnell, who is not involved with the Standard deal, said the price drop would be “similar to the diminution in values that we’ve seen around the city.”

Gaw, a fund run by Goodwin Gaw and his siblings, owns property worth an estimated $8 billion around the world. The company’s U.S. arm manages more than $2.7 billion worth of assets, including the Hollywood Roosevelt Hotel in Los Angeles. The company is also an investor in Second Home, a London-based co-working company.

Through subsidiaries, Gaw once had stakes in 123 William Street, 218 18th Street and 285 Madison Avenue. It has since sold its stakes in the properties. [NYP] — Kathryn Brenzel


Related Articles

arrow_forward_ios
(Facebook via The Palms Hotel Fire Island)
Fire (Island) sale: Palms Hotel hits the market
Fire (Island) sale: Palms Hotel hits the market
Trump International Hotel D.C. and Donald Trump (Getty, Trump Hotels)
Trump could profit $100M in DC hotel sale
Trump could profit $100M in DC hotel sale
Related's Stephen Ross and the Chelsea-Elliott Houses (Getty, Wikimedia)
Related wades into NYCHA — and becomes a target
Related wades into NYCHA — and becomes a target
Enterprise President and CEO Priscilla Almodovar (Getty)
Enterprise closes low-income housing funds after raising $365M
Enterprise closes low-income housing funds after raising $365M
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
WeWork says it must correct financial statements
WeWork says it must correct financial statements
601 Madison Ave. and Ben Soleimani (Google Maps, Ben Soleimani)
Ben Soleimani leases 12,000 square feet on Madison Avenue
Ben Soleimani leases 12,000 square feet on Madison Avenue
Rolling Gardens Apartment Homes at 405 Franklin Turnpike in Mahwah NJ (Apartments.com)
Morgan Properties trades NJ multifamily portfolio for $57.5M
Morgan Properties trades NJ multifamily portfolio for $57.5M
645 Madison Avenue (Google Maps)
645 Madison ground lease trades to Titan Golden for $27M
645 Madison ground lease trades to Titan Golden for $27M
arrow_forward_ios

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

Loading...