Hawkins Way Capital through the entity 569 Lexington Owner, LLC paid $146 million to RLJ Lodging Trust through the entity Rlj Iii – Dbt Metropolitan Manhattan, Lp for the hotel condo at 569 Lexington Avenue in Midtown East, Manhattan.
At the same time, Hawkins Way Capital signed a $119 million acquisition loan with G4 Capital Partners for the acquisition.
The total sale price was $166 million, because the buyer paid $20 million in hotel union obligation, according to a source familiar with the deal.
The deal closed on December 15, 2021 and was recorded on January 6, 2022.
The property has 340,000 square feet of built space according to PincusCo analysis of city data. The sale price including the $20 million obligation per built square foot is $488 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 December 22, 2010, for $331.6 million.
The signatory for RLJ Lodging Trust was Leslie D. Hale. The signatory for Hawkins Way Capital was Karan Suri.
The brokers were JLL’s Michele Mahl, Gilda Perez-Alvarado and Bob Knakal.
Crains reports the hotel sold for less than half of what it was valued at in 2010.
Within a 400-foot radius of 569 Lexington Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which 12.18. Investment Management bought the 119,465-square-foot, four-unit hotel (HB) on 150 East 50th Street for $13.7 million from Hyman Arbesfeld on December 4, 2019.
Of those four items, three were loans above $5 million totaling $537.1 million. The most recent of the three was Denihan Hospitality Group which borrowed $286.9 million from Goldman Sachs secured by the 109,921-square-foot, four-unit hotel (H1) on 557 Lexington Avenue and 27 other properties on April 21, 2021.
Direct link to Acris document. link