Capstone, Highgate buy the Nyma hotel

Apple Core Hotels sold the 17-story Koreatown property for $52M

Aug.August 31, 2017 02:22 PM

6-8 West 32 Street and Joshua Zamir (Credit: YouTube)

UPDATED, Aug. 31, 4:15 p.m.: Capstone Equities, in partnership with Highgate and an affiliate of Republic Investment Company, picked up the Nyma Hotel in Koreatown for $52 million, the latest hotel to trade in a struggling market, The Real Deal has learned.

Capstone, a Midtown investment firm led by Josh Zamir, Daniel Ghadamian and Justin Adelipour, provided the majority of the equity for the purchase of the 17-story, 171-key hotel at 6-8 West 32nd Street, sources said. Hotel investor Highgate will serve as the new manager and hold a small stake; Republic Hospitality, an affiliate of Republic Investment Company, also has a stake.

The deal, which came out to about $650 per square foot and $304,000 per key, closed Wednesday, sources said.

To close the purchase, Capstone secured a $39.5 million loan from debt fund manager Silverpeak Argentic, sources added.

The three-star, 80,000-square-foot hotel is formally known as “Nyma, the New York Manhattan Hotel” and was called the Red Roof Inn until a rebranding in 2010. The property, located between Fifth and Sixth avenues, was built in 1913 and converted from an office to hotel use years later.

The seller, Apple Core Hotels, bought the property in 1999 for an undisclosed price. Apple Core invests in independent midpriced hotels, including the Hotel at New York City at 161 Lexington Avenue and the Hotel at Times Square at 59 West 46th Street. The firm’s longtime president and COO, Vijay Dandapani, left in December to head the hospitality group Hotel Association of New York City.

JLL’s Jeff Davis and Gilda Perez-Alvarado brokered the acquisition. JLL’s Kevin Davis and Brett Rosenberg and Newmark Knight Frank’s Dustin Stolly brokered the financing. The brokers declined to comment, and representatives for Capstone and Apple Core did not immediately respond to requests for comment.

From left: Kevin Davis, Dustin Stolly and Jeff Davis

Capstone’s last big purchase was the former home of Hugh Hefner’s Playboy Club at 5 East 59th Street, which the firm bought with GreenOak Real Estate for $85 million in 2015.

The city’s hospitality market has seen a decline in room rates and hotel profits, as well as a bevy of properties languishing on the market. Hotels on the market include the Plaza Hotel, The Park Lane Hotel and the Quin. Both the Standard High Line in the Meatpacking District and the James Hotel in Soho are said to be nearing deals.

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