BCRE Trades The James NY Hotel for $85M
- May 03, 2013
Brack Capital Real Estate, a global real estate investment and development company, has sold The James New York, a luxury hotel in New York’s popular SOHO neighborhood, for approximately $85 million to an undisclosed buyer.
“There is an enormous appetite in the current market for income-producing assets that can generate cash. In an environment where interest rates are at historical lows and the future is unclear, investors that are looking for safe returns don’t have too many alternatives,” Issac Hera, BCRE’s CEO, told Commercial Property Executive. “The James New York presented such a great opportunity for buyers. Analyzing these facts, BCRE decided that it was the right time for us to realize the value we created at the James New York and look for new opportunities.”
Located at 27 Grand St., the 114-room hotel will continue to operate with Denihan Hospitality Group carrying on management, along with notable chef David Burke remaining to produce the highly acclaimed food and beverage menu.
Developed in 2010, the hotel was designed by ODA in collaboration with Perkins Eastman and Thomas Schlesser. The property features meticulously designed guestrooms and suites; sleek and spacious amenity spaces; renowned restaurants David Burke Kitchen and the Garden at David Burke; and a coveted rooftop lounge, called Jimmy, which includes jaw-dropping city skyline views, a private pool with cabanas and a bar with both indoor and outdoor seating.
The hotel includes spacious corner guestrooms with panoramic city views, one-bedroom suites and an impressive penthouse loft on the 15th floor. All rooms include carefully honed reclaimed materials complemented by a serene color scheme, to create a modern and inviting space. Additionally, the amenity spaces are bright and expansive, offering open, inviting common spaces not typically seen in comparable boutique properties.
According to Hera, once value was created and the right opportunity presented itself, the company decided to realize its investment and focus efforts on locating its next opportunity to create value.
“Downtown Manhattan is attracting many visitors and hotel guests that are looking for a unique experience of New York compared to what they would encounter in such locations as Midtown or Times Square,” he said. “This trend provides the opportunity for developers like BCRE to bring very unique assets, like the James New York, to the market that offer a distinctive design and program for discerning guests. We are continuing to focus on this market and are currently working on developing two hotels in the Downtown area that will be as unique and distinctive as the James New York and, I am confident, will be just as successful.”