Africa Israel USA has sold the Clock Tower Building at 5 Madison Ave. in New York City to hotel chain Marriott International, Inc. for $165 million, or almost $618 per square foot.
The 41-story, 267,000-square-foot office tower was built in 1909 in the Gramercy Park submarket near Madison Square Park. One of Manhattan's earliest skyscrapers, the landmark building was originally constructed and occupied by Metropolitan Life Insurance, and is still considered an architectural centerpiece for the area. AFI acquired the property, vacant since 2005, in May 2007 for $200 million, according to CoStar data.
The Clock Tower building is expected to be converted into New York City's first EDITION-brand hotel, a new luxury lifestyle hotel created by Marriott in partnership with Ian Schrager. The brand is expected to have six hotels in operation by 2015, with projects under construction in Bangkok and Abu Dhabi, and signed contracts in Miami Beach, Los Angeles and Gurgaon, India.
"We are delighted to have reached an agreement with Marriott International to secure the future of this remarkable building and support the burgeoning vitality of the Madison Square Park neighborhood. The EDITION Hotel brand will be a perfect fit for this great neighborhood," said Tamir Kazaz, CEO of AFI USA.
There were no brokers involved in the deal. Doug Heitner and Ashley Lostritto of Kasowitz Benson Torres & Friedman LLP provided legal representation for AFI USA in the sale.
Please see CoStar COMPS #2242993 for additional information on this transaction.