Marriott Vacations Worldwide pays $86.4M to 54 Madison Partners as first portion of delayed acquisition of hotel condo units in Garment District

Marriott International’s Marriott Vacations Worldwide paid $86.4 million to Henry Silverman’s 54 Madison Partners’s as the first part of a delayed sale of commercial condominium units in the hotel 33 West 37th Street. The total sales price is now expected to be $182 million. This first group includes 11 condominium units and was executed in six separate transactions. Marriott has been operating the property as the Marriott Vacation Club Pulse, New York City.

This is a portion of a larger sale first disclosed in SEC filings in 2017, at which time the sale price was given as $158.5 million, as reported by Real Estate Weekly in 2017.  Marriott reported in 2017 SEC filings that, “We had expected to make payments for these units of $96.8 million and $61.7 million in 2018 and 2019,” but that was extended to closings in 2020 and 2021 which now will total $182 million. There are expected to be closings totaling $120 million in 2020 and the balance of $62 million in 2021.

The transfer documents recorded in Acris show the sale from 54 Madison to Marriott went into contract on January 7, 2016. 54 Madison Partners bought the building on that same day, on January 7, 2016, for $105 million, borrowing $104 million from Guggenheim Partners, where Silverman served as CEO of its real estate businesses until 2015.  54 Madison also borrowed $500,000 at the time from Marriott.

In the first transaction, Marriott Vacations Worldwide Corporation through the entity Marriott Ownership Resorts, Inc. paid Henry Silverman’s 54 Madison Partners’s 54M 33W37 LLC $79.2 million for six condominium units in 33 West 37th Street in the Garment District. The deal closed on January 15, 2020, and was recorded on January 31, 2020. The transaction consists of 6 parcels, including the tax class commercial condo recorded in Acris (CC).

Direct link to Acris document. link

In the second transaction, Marriott International’s Marriott Vacations Worldwide Corporation through the entity Marriott Ownership Resorts, Inc. paid Henry Silverman’s 54 Madison Partners’s 54M 33W37 LLC $2.0 million for 33 WEST 37TH STREET in Garment District. The deal closed on January 15, 2020, and was recorded on January 31, 2020.

Direct link to Acris document. link

In the third transaction, Marriott International’s Marriott Vacations Worldwide Corporation through the entity Marriott Ownership Resorts, Inc. paid Henry Silverman’s 54 Madison Partners’s 54M 33W37 LLC $1.6 million for 33 WEST 37TH STREET in Garment District. The deal closed on January 15, 2020, and was recorded on January 31, 2020. The transaction consists of 1 parcel, including the tax class timeshare.

Direct link to Acris document. link