Electra America JV nabs Roger hotel for $71M discount

$19M deal is one of the first for Electra-AKA partnership to invest in distressed hotels

New York /
Jun.June 18, 2021 10:35 AM
The Roger New York hotel at 131 Madison Avenue, Larry Korman of AKA Hotel Residences and Joe Lubeck of Electra America (Google Maps, Getty, Electra)

The Roger New York hotel at 131 Madison Avenue, Larry Korman of AKA Hotel Residences and Joe Lubeck of Electra America (Google Maps, Getty, Electra)

Electra America Hospitality Group nabbed The Roger New York hotel for a hefty discount.

The joint venture between Electra America and luxury extended-stay firm AKA Hotel Residences snapped up the 193-room hotel at 131 Madison Ave. for $19 million. That’s $71 million less than what the hotel’s last buyer, LaSalle Hotel Properties, paid in 2010, Commercial Observer reported.

The seller in the transaction was Pebblebrook Hotel Trust, which acquired ownership of LaSalle in 2018 through a $5.2 billion buyout. Maxim Capital Group served as the lender in the deal.

Pebblebrook said proceeds from the sale could go toward reducing the company’s outstanding debt, as well as acquiring or investing in other hotel properties. The Roger, which has 23 years left on its ground lease, is closed until Spring 2022 for renovations, its website says.

The deal is one of the first for the Electra-AKA team’s distressed hotel venture. The team debuted a $500 million investment fund in February to pick up discounted hotels in New York, Miami, Los Angeles, Washington D.C., Toronto and London.

After the pandemic decimated the hospitality industry, New York’s hotel stock has seen several distressed properties trade hands and hundreds of others close entirely, Commercial Observer reported.

Mack Real Estate Group bought a portfolio of seven Manhattan hotels at auction for a more than 60 percent discount in May, the same month AllianceBernstein transferred the ground lease for FiDi’s Motel Hotel to lender Tribeca Associates. Katara Hospitality bought the ground lease for Chelsea’s Dream Downtown this month after the hotel’s owner defaulted on a $80 million loan.

The New York State Legislature passed a bill this month that would allow the conversion of distressed hotels into permanent affordable housing. The legislation is awaiting a signature from Gov. Andrew Cuomo.

[Commercial Observer] — Suzannah Cavanaugh





    Related Articles

    arrow_forward_ios
    Upcoming issue: Surreal estate
    Upcoming issue: Surreal estate
    Upcoming issue: Surreal estate
    Clockwise from top left: Charles Cohen, Douglas Durst and 657 West 57th Street Avenue (Getty, Google Maps)
    Durst sues Landmark Theatres for $49M in damages, unpaid rent at UWS cinema
    Durst sues Landmark Theatres for $49M in damages, unpaid rent at UWS cinema
    MGM Growth Properties CEO James Stewart and Vici CEO Edward Pitoniak (MGM, Vici)
    Casino REIT Vici Properties acquires MGM Growth Properties in $17B deal
    Casino REIT Vici Properties acquires MGM Growth Properties in $17B deal
    Residence Inn Austin Northwest, TownePlace Suites Austin Northwest and Chatham Lodging Trust CEO Jeffrey Fisher (Marriott, Chatham Lodging Trust)
    Chatham Lodging Trust buys two Marriott-branded hotels in Austin for $71M
    Chatham Lodging Trust buys two Marriott-branded hotels in Austin for $71M
    essensys CEO Jeremy Bernard (iStock)
    Flex workspace tech firm essensys eyes US, APAC expansion
    Flex workspace tech firm essensys eyes US, APAC expansion
    27 Whitehall Street (Google Maps, iStock)
    Fidi landlord accused of permitting massage parlor prostitution
    Fidi landlord accused of permitting massage parlor prostitution
    Isaac Kassirer and his properties at 1187-97 Anderson Ave., 1220 Shakespeare Ave., and 1210 and 1230 Woodycrest Ave. (Google Maps)
    His portfolio decimated, Isaac Kassirer gets creative with rents
    His portfolio decimated, Isaac Kassirer gets creative with rents
    Mayor Bill de Blasio (Getty, iStock)
    NYC to require vaccines for indoor dining, gyms and performance venues
    NYC to require vaccines for indoor dining, gyms and performance venues
    arrow_forward_ios

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

    Loading...