Dauntless Capital pays $290.2M to McSam Hotel for hotel in Midtown West

150 West 48th Street Unit 1 (Credit - Google)

150 West 48th Street Unit 1 (Credit - Google)

Houston-base private equity firm Dauntless Capital Partners through the entity Haley Point RE Holdings, LLC paid $290.2 million to McSam Hotel Group through the entity Tmhcr 48th Street LLC for one of two hotel condominium units in the property at 150 West 48th Street in Midtown West, Manhattan. This is the larger of the two hotel condominiums in the newly constructed hotel tower. This unit contains about 189,000 square feet. This unit is the western two vertical sections of the building, on the left if looking from 48th Street.
McSam Hotel Group sold the other hotel unit, with about 100,104 square feet, to Magna Hospitality Group for $159.3 million, as PincusCo reported yesterday.
This new deal closed on September 8, 2023 and was recorded on September 13, 2023. The property has about 189,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,534 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 McSam Hotel Group was Sam Chang. The signatory for Dauntless Capital Partners was Cramer Williams. The contract date was January 13, 2022. Dauntless Capital Partners is a hospitality-focused real estate private equity company. 

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Dauntless Capital Partners had in New York City purchased any other properties and has no record it sold any properties over the past 24 months.
The seller McSam Hotel Group sold eight properties in eight transactions for a total of $494 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.

The block

On this tax block, PincusCo has identified the owners of eight of the nine commercial properties representing 3,151,132 square feet of the 3,154,582 square feet. The largest owner is Tribeach Holdings, followed by SL Green Realty and then Riu Hotels & Resorts.
On the tax block, there were four new building construction projects totaling 627,760 square feet. The largest is a 1,064-unit, 260,360 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Sam Chang with plans filed December 23, 2019 and permitted February 19, 2020. The second largest is a 650-unit, 248,520 square-foot hotel/dormitory/shelter (R-1) building submitted by RIU Hotels & Resorts and filed by David Wrobel with plans filed April 5, 2017 and permitted February 11, 2019.

The majority, or 63 percent of the 3.2 million square feet of built space are office buildings, with hotel buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Mcsam Hotel Group owned at least 20 commercial properties with 17 residential units in New York City with 1,147,084 square feet and a city-determined market value of $263.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 96 percent of the 1,147,084 square feet of built space are hotel properties, with industrial properties next occupying 3 percent of the space. The bulk, or 77 percent of the built space, is in Manhattan, with Queens next at 23 percent of the space.

Direct link to Acris document. link

Share this article