KSL Capital acquires 6 Hersha NYC hotels valued at $317.8M, part of $1.4B stock acquisition

KSL Capital Partners through the entity 1776 Portfolio Investment, LLC acquired six Hersha Hospitality Trust hotels through the entity Hersha Hospitality Trust (On Behalf Of Its Public including the hotel building (H1) at 132 4th Avenue in Greenwich Village, Manhattan, hotel building (H2) at 206 East 52nd Street in Midtown East, Manhattan, and hotel building (H2) at 148-18 134th Street in South Ozone Park, Queens. The transaction was valued at $317.8 million and was part of KSL’s $1.4 billion purchase of Hersha Hospitality Trust, a deal the parties announced in August 2023, and which closed in November 2023.
The deal closed on November 28, 2023 and was recorded on December 27, 2023. The six properties have 432,932 square feet of built space and 45,220 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $734 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.)
This transaction represents the entity level purchase of the properties, related to KSL Capital Partner’s $1.4 billion purchase of all Hersha Hospitality Trust stock.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer KSL Capital Partners had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hersha Hospitality Trust had not purchased any other properties and sold two properties in two transactions for a total of $35.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ashish Parikh, head officer and Hiram Negron, agent. The business entity is HHLP Union Square Lessee, LLC.

The buyer

The PincusCo database currently indicates that KSL Capital Partners owned at least four commercial properties in New York City with 300,873 square feet and a city-determined market value of $141.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. The bulk, or 75 percent of the built space, is in Manhattan, with Queens next at 25 percent of the space.

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