Felcor Lodging Trust, Inc. a Texas-based Lodging/Resort Equity REIT, acquired the hotel portion of the former Knickerbocker Hotel in midtown Manhattan from Walton Street Capital LLC for $115 million, or about $510 per square foot. The purchase price reflects a 30% discount per square foot, compared to recent similar transactions.
The historic hotel delivered in 1906 at 1466 Broadway in New York's Penn Plaza district, near Times Square. The hotel was converted to premier office and showroom condos around 1980. The cellar, ground floor, mezzanine, second and third floors are currently under construction to be converted back into a hotel of approximately 237,226 square feet. The four-plus star, class A hotel will feature a total of 330 large guest rooms, exceeding 420 square feet on average, several food and beverage outlets, a state-of-the-art meeting space and a full-service fitness facility. Highgate Holdings LLC will manage the hotel.
Andrew Lance, co-head of Gibson Dunn's Real Estate Practice Group's Hotel and Hospitality Practice, advised the buyer in the acquisition.
Please see CoStar COMPS #2227746 for more information on this transaction.