Yellowstone buys Watson Hotel valued at $190M in Clinton
Isaac Hera’s Yellowstone Real Estate Investments bought the Watson Hotel fee and ground lease with a total value of $189.97 million at 440 West 57th Street in Clinton in two transactions.
The total value for Yellowstone’s purchase was $189.97 million for the ground lease acquired from BD Hotels for $35 million and the fee acquired from Woodridge for $154.9 million. Bloomberg which first reported the sale said the price was $175 million. PincusCo cannot explain the difference at this time.
The contract date was December 29, 2020. The last time the property sold was May 12, 2016 for $148,800,000. The signatory for the seller was Michael Rosenfeld of Woodridge, while Isaac Hera, who leads Yellowstone, signed for the buyer. The ground lease was extinguished simultaneously with the purchase.
In the first of the two transactions, Yellowstone Real Estate Investments through the entity YS 440W57 Owner LLC paid Woodridge Capital Partners’s Ninth To Tenth Partners, LLC $154.9 million for the fee at 440 West 57th Street in Clinton. The deal closed on March 31, 2021 and was recorded on April 7, 2021. The transaction consists of 1 parcel, including the tax class luxury type hotel built after 1960 (H2). The property is 441,347 square feet. The parcel(s) have total development potential of 441,347 square feet.
The average sale price per square foot is $351.
In the second transaction for the ground lease, Yellowstone Real Estate Investments through the entity YS 440W57 Holdings LLC acquired a leasehold from BD Hotels through the entity West 57 Hotel, L.P. valued at $35.1 million for 1 parcel, including the tax class luxury type hotel built after 1960 (H2) at 440 West 57th Street in Clinton. The deal closed on March 31, 2021 and was recorded on April 7, 2021.
Over the past five years, there have been 4 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $676,500.
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