Timeshare company pays $41.4M for Roger Smith Hotel in Midtown East

Roger Smith Hotel (Credit: Google)

The Florida-based company Timeshare Acquisitions through the entity Timeshare Acquisitions At Lexington LLC paid $41.4 million to the owners of the Roger Smith Hotel, through the entity Roger Smith New York LLC, for the 134-key hotel at 501 Lexington Avenue in Midtown East, Manhattan.
To finance the purchase, Timeshare Acquisitions as borrower signed an acquisition loan with lender Western Alliance Bank valued at $34 million.

The deal closed on February 8, 2022 and was recorded on February 25, 2022.
The property has 92,501 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $447 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.)
The signatory for Roger Smith Hotel was Phoebe Knowles. The signatory for Timeshare Acquisitions was Bert Blicher.

In addition to buying this hotel, Bert Blicher is the owner of Fidelity Real Estate, which is a brokerage firm that sells timeshare properties.

In Midtown East, the majority, or 77 percent of the 65.7 million square feet of built space are office buildings, with residential elevator buildings next occupying 8 percent of the space. In sales, Midtown East has 4 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Midtown East has 4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Manhattan. It had 3.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.
On the tax block, the majority, or 64 percent of the 887,831 square feet of built space are hotel buildings, with residential elevator buildings next occupying 34 percent of the space.
The former owners according to the Department of Housing Preservation and Development included James Knowles, head officer and Craig Russell, agent. The business entity is Unit No 3 Corp.
Within a 400-foot radius of 501-507 Lexington Avenue, PincusCo identified 15 commercial real estate items of interests occurred over the past 24 months.
Of those 15 items, one was in new building development. It was a new building permit issued on August 12, 2021 for a 151,836-square-foot R-2 building with 137 residential units at 135 East 47th Street.
Of those 15 items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $2.6 million. The most recent of these two items was the filing on February 8, 2022 for a 1,452,099-square-foot A-2 building with 0 residential units at 480 Lexington Avenue.
Of those 15 items, five were sales above $5 million totaling $379.9 million. The most recent of the five was Holiday Inn Club Vacations which bought the 3,864-square-foot, four-unit mixed-use building (S3) on 123 East 47th Street and one other property for $8.5 million from Minex Corporation on February 16, 2022.
Of those 15 items, seven were loans above $5 million totaling $754.9 million. The most recent of the seven was USAA Real Estate which borrowed $128 million from PCCP secured by the 297,703-square-foot, 310-unit rental (D7) on 760 3rd Avenue on January 24, 2022.

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