Downtown NYC Hotel Site Sells for $28M; $70M Development Planned
- Apr 24, 2012
By Scott Baltic, Contributing Editor
A 6,160-square-foot hotel development site at 133-135 Greenwich St. in Downtown Manhattan has been purchased by Hidrock Realty for $28 million. Eastern Consolidated represented the seller and procured Hidrock as the buyer of the parcel, which is almost adjacent to the World Trade Center site. A luxury 150,000-square-foot, 33-story mixed-use building with a 28-floor, 300-room, $70 million hotel is slated for the site. The hotel is scheduled to open in early 2015, according to Eastern Consolidated associate director Robert Khodadadian.
The purchase is a step toward Hidrock’s goal of acquiring $250 million in assets by mid-2013, according to Eastern Consolidated senior director Adelaide Polsinelli.
The approved design plans for the project were created by Costas Kondylis and Partners, which also designed Manhattan residential condo towers Trump World Tower and The Atelier and, so far, five residential buildings at the 75-acre Riverside South project. The firm is also overseeing the restoration/renovation of The Plaza Hotel & Residences on Fifth Avenue.
Developer Sam Zell had bid on the site in 2010, after its Israeli owners filed for bankruptcy. They had reportedly paid $45 million at the height of the real estate boom and planned a 203-room hotel.
Currently, Manhattan’s hotel market is “extremely healthy” with occupancies back up to their pre-recession average of 85 percent, John Fox, senior vice president with the New York office of PKF Consulting USA, told Commercial Property Executive. In addition, he said, room rates are close to their previous peak, and RevPAR was up in the first two months of this year by nearly 5 percent over the same period a year earlier.
“We’ve added a lot of new hotel rooms in Manhattan over the last three or four years,” Fox said, but even that has not stalled the sector’s recovery. And although several thousand more rooms are in the pipeline, he sees nothing on the horizon to warrant concern for Manhattan’s hotels.
The site at 133-135 Greenwich site is a good location, Fox said. “That area, over the next two years, is going to take off,” as the rebuilt World Trade Center is completed and occupied.
Polsinelli and Khodadadian procured the buyer, and Eastern Consolidated executive managing director David Schechtman and senior director Lipa Lieberman represented the seller.
Jeffrey Dayon of Mishaan Dayon & Lieblich represented Hidrock, and Daniel Mann of Michael, Levitt & Rubenstein L.L.C. represented the seller.