Atlas acquires Murray Hill hotel for $69M, plans 190-unit rental

Eastgate Tower Hotel
Eastgate Tower Hotel

Manhattan-based real estate investment firm Atlas Capital Group has acquired the Eastgate Tower Hotel, a 187-key property at 224 East 39th Street, from a Rhode Island-based hospitality company. The deal for the Murray Hill property closed November 8, according to public records filed with the city today. The closing price was $69 million.

Atlas plans on converting the 147,000-square-foot property into a 190-unit luxury rental building, according to its website. The building features an 86-space parking garage.

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The seller of the hotel was the Procaccianti Group, a family-run company based out of Cranston, R.I. Procaccianti acquired the property for $68 million in 2006, records show.

It was not immediately clear if a broker was involved in the deal. Neither the buyer nor the seller was immediately available for comment.

The acquisition rounds off an eventful year for Atlas, which partnered with investment firm GreenOak in January to buy the defaulted note on a recently developed office property at 218 West 18th Street, previously owned by embattled developer Harry Jeremias.