Fourth Magna Hospitality Group hotel sale, this for $36.9M in Penn Plaza

An anonymous buyer in care of Arnold & Porter Kaye Scholer through the entity Penn 33rd LLC paid $36.9 million to Magna Hospitality Group through the entity Ny 33rd Leasehold LLC for the ground lease controlling the hotel building (H1) at 325 West 33rd Street in Penn Plaza, Manhattan. The expected use is cash flowing. This is the fourth of four hotels the anonymous buyer acquired from Magna.
The deal closed on September 30, 2025 and was recorded on October 9, 2025. The property has 120,639 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $305 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 seller bought the property on September 26, 2014, for $27.1 million. The signatory for Magna Hospitality Group was Gregory Weingart . The signatory for Arnold & Porter Kaye Scholer registered was Gregory Weingart . This is part of a 4-hotel sale to an undisclosed buyer. The Shidler Group’s Terra Hospitality Trust owns the fee.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Arnold & Porter Kaye Scholer registered purchased three properties in three transactions for a total of $329.3 million and has no record it sold any properties over the past 24 months.
The seller Magna Hospitality Group purchased one property in one transaction for a total of $143.9 million and sold two properties in two transactions for a total of $260.6 million over the same time period. The 120,639-square-foot property generated revenue of $25.2 million or $209 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Penn Plaza has 120,639 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 98 feet deep with a total lot size of 7,406 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $38.4 million. New York Life Insurance Company on July 9, 2024 bought a loan with an original principal of from signed by Gregory Weingart, secured by 325 West 33rd Street, when owned by Magna Hospitality Group.

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 received $5,050 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 5, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has had very little sales volume relative to other neighborhoods with $148 million in sales volume in the last two years. For development, Penn Plaza has 2.7 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 19 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the seven commercial properties representing 2,254,251 square feet of the 2,254,251 square feet. The largest owner is Haymes Investment Company, followed by Sl Green Realty and then Kibel Companies.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 2.3 million square feet of built space are office buildings, with elevator buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Magna Hospitality Group owned at least five commercial properties in New York City with 822,460 square feet and a city-determined market value of $333.9 million. (Market value is typically about 50% of actual value.) The portfolio has $935.9 million in debt, with top three lenders as KSL Capital Partners, PIMCO, and Blackstone Group respectively. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Arnold & Porter Kaye Scholer Registered owned at least five commercial properties with 320 residential units in New York City with 717,291 square feet and a city-determined market value of $213.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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