Chartres Lodging Group pays $49.5M to Barings for hotel in Midtown West

Chartres Lodging Group through the entity Nymz, LLC paid $49.5 million to Barings through the entity West 46th Street Hotel, LLC for the hotel building (H1) at 130 West 46th Street in Midtown West, Manhattan.

The sale was financed with a purchase money loan of $37.98 million given by MassMutual, an affiliate of Barings, the seller.
The deal closed on September 23, 2022 and was recorded on October 12, 2022. The property has 113,969 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $434 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 Barings was Stuart J. Turner. This is the first purchase for Chartres in New York City in at least the past three years according to PincusCo. MassMutual, which along with Cornerstone Real Estate Advisors and other companies, was merged under the single brand of Barings.  Barings through MassMutual, acquired title to the property in 1999.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Chartres Lodging Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Barings purchased one property in one transaction for a total of $73.7 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Scott Spurlock, head officer and Bill Babis, officer. The business entities are Kimpton Hotels and Massachusetts Mutual Life.

The property

The 130 West 46th Street parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,033 square feet. The zoning is C6-5.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $35.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $600 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Midtown West, the majority, or 73 percent of the 77.7 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 9.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 25 commercial properties representing 1,933,232 square feet of the 2,644,692 square feet. The largest owner is Vornado Realty Trust, followed by Silverstein Properties and then Edge Fund Advisors.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 1.8 million square feet of built space are office buildings, with hotel buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Barings owned at least one commercial property in New York City with 102,824 square feet and a city-determined market value of $29.3 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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