Host Hotels & Resorts Announces Two Major NYC Sales
- Sep 26, 2018
Vornado Realty Trust has acquired an approximately 46 percent interest in the retail condominium located at the base of the New York Marriott Marquis Times Square hotel from Host Hotels & Resorts Inc., for $442 million.
The company had previously acquired the other 54 percent interest and redeveloped the property, which is located at 1535 Broadway. It now owns the entire 45,000 square feet of retail in the building, which has a tenant roster of T-Mobile, Invicta, Swatch, Levi’s and Sephora.
The deal also included the 1,611-seat Marquis Theater, which is leased to the Nederlander Org., and the largest digital sign in New York with a 330-linear-foot, 25,000-square-foot display.
Host Hotels & Resorts Inc. also completed the sale of the 20-story W New York – Union Square for $171 million, to Westbrook Partners. Located at 201 Park Ave. S, and originally built in 1911, the W New York – Union Square offers 270 guestrooms.
“Today’s announcements demonstrate our continued ability to identify, execute, and effectively monetize investment opportunities within our portfolio at very attractive pricing,” James Risoleo, Host Hotels & Resorts’ president & CEO, said in a prepared statement. “Based on 2018 forecasts, the sale price for these transactions represent a 26x EBITDA multiple.”
Host Hotels & Resorts now owns 88 properties in the U.S. and six properties internationally, totaling approximately 52,400 guestrooms.
According to Risoleo, both transactions allow the company to take advantage of the remaining like-kind exchange benefits from its Hyatt portfolio purchase that occurred earlier in 2017.
“The proceeds continue to strengthen our investment grade balance sheet and enhance our ability to make strategic investments that ultimately drive long-term value creation for our stockholders,” he said.
A major NYC player
Vornado currently owns and operates more than 20 million square feet of prime office properties. In August, the company refinanced 4 Union Square South, a 206,000-square-foot retail building located on E. 14th St. in Manhattan, for $120 million.
Its Manhattan office portfolio also consists of the global headquarters of Bloomberg LP at 731 Lexington Ave., more than 9 million square feet in Penn Plaza and Amazon’s inaugural headquarters in New York City at 7 West 34th St.
Image courtesy of Ricardo Gomez Angel via Unsplash