Lone Star Funds is shopping a 300-room Hilton Hotel Sandwiched Between Grand Central And The United Nations On East 42nd Street.
Bids for the hotel, located at 304 East 42nd Street, are expected to reach $75 million, sources told Real Estate Alert.
Dallas-based Lone Star Funds acquired the hotel, as part of a $5 billion deal for an Anglo Irish Bank portfolio of sub- and non-performing loans back in 2011. It is unclear if Lone Star now owns the property, REA reported. It’s possible that the borrower has agreed to surrender the deed in lieu of foreclosure.
The Rhode Island-based Procaccianti Group paid $109 million for the property, formally known as the Tudor Hotel, in 2007. It was then renovated and Hilton took over the management and operations. It then suffered through the recession.
The property comes with 3,500 square feet of event space and a “grab-and-go” cafe. The ground lease has 70 years remaining. [REA] – Christopher Cameron