C-III Capital Partners pays $185.3M to DiamondRock Hospitality for hotel in Grand Central

C-III Capital Partners, an affiliate of Island Capital Group, through the entity Lexington Hotel Owner LLC paid $185.3 million to DiamondRock Hospitality through the entity Diamondrock Ny Lex Owner, LLC for the hotel (H1) at 511 Lexington Avenue in Grand Central, Manhattan.
The deal closed on June 30, 2021 and was recorded on July 9, 2021.
The property has 314,568 square feet of built space and 0 square feet of additional air rights for a total buildable of 175,220 square feet according to PincusCo analysis of city data. The sale price per built square foot is $551 per the PincusCo analysis.
The owner bought the property on 17-Jun-11, for $333.7 million.
The signatory for DiamondRock Hospitality was William J. Tennis. The signatory for C-III Capital Partners was Katherine D. Furman.

The total transaction was $185.3 million, but the real estate transfer tax was paid on $173.5 million. According to the company website, “Island Capital Group LLC is a leading international real estate merchant bank headquartered in New York City that controls a diverse group of real estate services companies, including C-III Capital Partners.”
The former owners according to the Department of Housing Preservation and Development includes Spiro Frangos, head officer and William Van Wassenhove, site manager. The business entity is Diamond Rock Ny Lex Owner Llc.
Within a 400-foot radius of 511 Lexington Avenue, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was for major renovation including a certificate of occupancy change. It was a permit issued on July 16, 2019 for the $4.6 million renovation of 217,500-square-foot residential R-2 building with 278 residential units at 160 East 48th Street.
Of those nine items, two were sales above $5 million totaling $164.9 million. The most recent of the two was AEW Capital Management which bought the 114,500-square-foot, 211-unit hotel (H3) on 144 East 48th Street for $49.9 million from Stonebridge Companies on June 16, 2021.
Of those nine items, six were loans above $5 million totaling $393.4 million. The most recent of the six was Angelo A. Federico which borrowed $6.5 million from Flushing Bank secured by the 21,400-square-foot, one-unit industrial (M9) on 153 East 48th Street on March 3, 2021.

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