Ashkenazy, Deka put Marriott East Side on the market
Pair paid $270M for the property in May 2015
Ashkenazy Acquisition and Deka Immobilien put the New York Marriott East Side hotel on the market a mere 17 months after buying.
A source told the Commercial Observer that the sellers are unlikely to get more than the $270 million they paid for The 525 Lexington Avenue property in May 2015, thanks to a slowing hotel market.
Built in 1924, the landmarked building spans 319,319 square feet and includes 655 hotel rooms and the 525LEX restaurant. According to offering materials, the building “benefited from $56 million ($85,000 per key) of recent capital expenditures.”
Colliers International [TRDataCustom] has the listing. Ashkenazy and Deka bought the hotel from Morgan Stanley’s Prime Property Fund, which had paid $287 million for the building in 2005.
In June, The Real Deal examined New York’s hotel sectors to see how they’re staying competitive in an overbuilt market. [CO] — Konrad Putzier