Queensgate Investments pays $174M to Ronald Burkle’s Yucaipa Companies and the Sydell Group for Freehand hotel

Queensgate Investments through the entity George Midco LLC paid Ronald Burkle’s Yucaipa Companies and the Sydell Group’s 23 Lexington Holdings LLC $173.9 million for the Freehand New York at 23 Lexington Avenue also known as 135 East 23rd Street in Flatiron. The deal closed on October 11, 2019, and was recorded on October 17, 2019. The 417-key hotel is in a 163,311-square-foot building.

Queensgate purchased the former Washington Apartments from Yucaipa and Sydell Group as part of a $400 million transaction for the Freehand hotels in New York, Los Angeles, Miami Beach and Chicago
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building with 417 residential (or hotel) units on June 5, 2018.
Over the past five years, there have been 7 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $1,310,000. There were 6 renovation/alteration projects (A2) applied for with a total estimated value of $8,954,257.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.

Clarification: This post was updated to include the address 23 Lexington Avenue in addition to the address 135 East 23rd Street.