Apollo Global Management and Newbond Holdings through the entity Two TSQ Hotel Owner LLC paid $165 million to Sherwood Equities through the entity Sherwood 48 Associates for the Marriott Renaissance New York Times Square Hotel condominium unit at 2 Times Square in Times Square, Manhattan.
The deal closed on October 19, 2023 and was recorded on October 25, 2023. The property has 176,044 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $937 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Sherwood Equities was Jeffrey Katz. The signatory for Apollo Global Management and Newbond Holdings was Tracey Gamble of Apollo. The contract date was given as October 19, 2023, however the Wall Street Journal reported earlier in October that the unit was in contract.
The hotel condo unit is the largest of the three commercial condominium units that make up the building. It is 176,044 square feet on floors 1, 2, and 3 through 25 while the retail is 26,992 sf on lower levels, 1 and 2, and the tower room unit which controls most of the exterior signage, is just 276 feet of floor space.
The brokers were Adam Spies, Adam Etra, Avery Silverstein, Marcella Fasulo and Nikita Bernstein of Newmark according to a Yahoo news article. Sherwood developed the building in the 1990s and still owns the retail and signage. However, in January 2023 Sherwood as landlord signed a 49-year lease with Providence Equity Partners as tenant for the signage valued at $183.8 million.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Apollo Global Management purchased one property in one transaction for a total of $83.5 million and has no record it sold any properties over the past 24 months.
The seller Sherwood Equities had not purchased any other properties and sold or leased four properties in three transactions for a total of $499.8 million over the same time period.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.
In Times Square, The majority, or 58 percent of the 10.1 million square feet of commercial built space are office buildings, with hotel buildings next occupying 30 percent of the space. In sales, Times Square has 2.8 times the average sales volume among other neighborhoods with $1 billion in sales volume in the last two years and is the 13th highest in Manhattan. For development, Times Square has had very little major development activity relative to other neighborhoods.It had 724,404 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.
On this tax block, PincusCo has identified the owners of three of the 11 commercial properties representing 584,711 square feet of the 720,708 square feet. The largest owner is Slate Property Group, followed by Prasit Realty Corp. and then Mehran Kohansieh.
There are no active new building construction projects on this tax block.
The majority, or 64 percent of the 720,708 square feet of built space are elevator buildings, with hotel buildings next occupying 16 percent of the space.
The PincusCo database currently indicates that Apollo Global Management owned at least four commercial properties with 1,590 residential units in New York City with 1,696,984 square feet and a city-determined market value of $151.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 82 percent of the 1,696,984 square feet of built space are elevator properties, with hotel properties next occupying 18 percent of the space. They are all located in Manhattan.
The PincusCo database currently indicates that Newbond Holdings owned at least one commercial property in New York City with 300,359 square feet and a city-determined market value of $85.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.
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