Dubai Investment Group Brings its 2006 NYC Acquisitions to More Than $2 Billion with Latest Landmark Purchase
In what's becoming an increasingly frequent storyline, Dubai-based investment firm Istithmar has acquired another trophy-class Manhattan asset. Istithmar Hotels, a subsidiary of the Middle Eastern investor, bought the landmark W Hotel Union Square for $285 million, or approximately $1 million per key.
The Related Cos. LP sold the Gramercy Park property, with Multi-Employer Property Trust as its participating lender.
The deal represents Istithmar’s fifth major acquisition in New York. The firm made its first foray into the Big Apple's real estate market in November 2005, paying $705 million for the architecturally distinct Helmsley Building at 230 Park Ave.
Yet the Helmsley deal proved only to be the forerunner to a number of equally, if not more impressive acquisitions this year. In separate June transactions, Istithmar acquired the historic Knickerbocker Hotel and the 43-story Bankers Trust Building at 280 Park Ave. for $300 million and $1.2 billion, respectively. The firm followed up on its mid-summer blockbuster deals by purchasing the 910,000-square-foot office tower at 450 Lexington Ave. in August for $600 million. Its 2006 New York City acquisitions currently stand at more than $2 billion.
Located on the northeast corner of Union Square at Park Ave. and East 17th St., the 20-story W Hotel was formerly known as the Guardian Life Insurance Building. Related Cos. acquired the property in 1999 and converted the office building into a hotel that December. The 270-room, 200,000-square-foot building was the first hotel to open in the Union Square neighborhood.
Buyer and seller representation was not disclosed. See CoStar COMP #NYC-31916-10-0620 for more information on this transaction.