Ashkenazy to purchase Marriott East Side for $290M
Morgan Stanley fund bought the hotel in 2005 for $284M
Ashkenazy Acquisitions is looking to buy the New York Marriott East Side for $290 million.
The firm is in contract to purchase the 655-room hotel, according to the New York Post, for $443,000 per key.
The Prime Property Fund, managed by Morgan Stanley’s real estate unit, is selling the property, which it bought in 2005 for $284 million. The sellers also spent roughly $56 million on renovations on the 35-story hotel.
The Marriott, located on Lexington between East 48th and East 49th streets, comes cheaper than some other hotels that have been purchased recently. A 99-year lease on the Waldorf Astoria, currently in contract, works out to $1.3 million per room. The Sofitel, which has 398 rooms, went into contract for a total of $273 million, or $686,000 per key.
The pricing is based on cash flow and necessary capital expenditures, the Post reported.
Earlier this fall, Ashkenazy bought two retail buildings near the Port Authority for $40 million. [NYP] — Claire Moses