Korean firm Aju Hotels pays $51.2M to Chesapeake hotel REIT for Herald Square hotel

Aju Hotels & Resorts purchased an interest in the Hyatt Herald Square at 30 West 31st Street (Credit: Google)

The Korean investment company Aju Hotels & Resorts through the entity Blue 31st Street NYC LLC paid Chesapeake Lodging Trust’s CHSP 31st Street LLC $51.2 million for an interest in the Hyatt Herald Square New York at 30 West 31st Street in Nomad. The deal closed on September 17, 2019, and was recorded on September 27, 2019. The 122-key hotel (H2) property is 60,270 square feet. The transaction was completed one day before the hospitality REIT Park Hotels & Resorts closed on its acquisition of Chesapeake, also a REIT, for $2.5 billion.

A news report from July said Chesapeake was also selling the Hyatt Herald Square as well as the 185-key Hyatt Place New York Midtown South at 52 West 36th Street to the same buyer for a total price of $138 million, but no transfer documents have been filed yet for that second hotel.
The average sale price per square foot for the Hyatt Herald Square is $849.
The estimated cap rate is 4.4%
Aju did not acquire an interest in the building through a typical deed, instead it recorded the exchange through a document often used to record the sale of an ownership stake but not the fee interest itself. Aju and Chesapeake did not immediately respond to requests for comment. The last time the property sold was December 22, 2011, when Chesapeake bought it for $52,200,000.
The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building on July 17, 2012.
Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 renovation/alteration projects (A2) applied for with a total estimated value of $980,000.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.

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