Hilton Resorts pays $135.6M to 54 Madison Partners for second stake in Midtown East hotel

Hilton Resorts through the entity Hilton Resorts Corporation paid $135.6 million to 54 Madison Partners through the entity 1248 Associates LLC for two hotel condominium units at the hotel The Central at 5th New York at 12 East 48th Street in Midtown East, Manhattan.
The deal closed on January 31, 2023 and was recorded on February 8, 2023. The sale is for portions of tax lots 1002 and 1003 called TIMEB.
The signatory for 54 Madison Partners was Henry Silverman. The signatory for Hilton Resorts was Daniel J. Matthews.
This is the second purchase Hilton Resorts has completed with 54 Madison Partners at this property. In July 2021, Hilton paid $58.4 million to 54 Madison Partners for a portion of tax lot 1002 called TIMEA.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Hilton Resorts purchased one properties in one transactions for a total of $58.4 million and has no record it sold any properties over the past 24 months.
The seller 54 Madison Partners had not purchased any other properties and sold one properties in one transactions for a total of $58.4 million over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations 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 block

On the tax block of 13 East 47th Street, PincusCo has identified the owners of nine of the 21 commercial properties representing 1,986,754 square feet of the 2,309,122 square feet. The largest owner is 54 Madison Partners, followed by Stawski Partners and then Solil Management.
On the tax block, there was one new building construction project filed totaling 1,862,831 square feet. It is a 1,862,831-square-foot office (B) building developed by JPMorgan Chase with plans filed June 26, 2019 and permitted November 30, 2021.

The majority, or 82 percent of the 2.2 million square feet of built space are office buildings, with retail buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that 54 Madison Partners owned at least one commercial property in New York City with 115,924 square feet and a city-determined market value of $32.3 million. (Market value is typically about 50% of actual value.) The portfolio has $85 million in debt, borrowed from Guggenheim Partners. The portfolio consists of at least a single hotel property. It is located in Manhattan.

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