What was once the world’s tallest Holiday Inn and more recently a migrant shelter in lower Manhattan has been sold for $154.5 million with the new owner eyeing a makeover.
Los Angeles-based Hawkins Way Capital, a real estate investment company with $3 billion in assets under management, bought the former 492-key Holiday Inn at 99 Washington St. in the Financial District, Hawkins Way said in a statement. The purchase adds to the real estate investment firm’s national portfolio and is part of its investment focus on “identifying and repositioning out-of-favor urban assets,” Hawkins Way said.
Public records showed the transaction price and the seller, an entity called Golden Seahorse.
The property shut down as a hotel during the pandemic before it became one of New York’s migrant intake centers and shelters. The city said in January the property was among a slew of others that it would close as migrant housing by June.
"This acquisition reflects Hawkins Way's focus on investing in out-of-favor assets feeling post COVID-19 effects with strong potential," Joshua Bird, partner at Hawkins Way, said in the statement. "Located in the heart of Manhattan's Financial District, the property offers substantial opportunity.”
The firm plans to redevelop the property through “targeted renovations,” including cosmetic upgrades to all guestrooms and corridors. The “reimagined” property, featuring about 650 beds, will also convert the former hotel amenity areas into “functional shared spaces” such as a communal kitchen and dining area, laundry rooms, lounges, study spaces and a fitness center, Hawkins Way said.
Hawkins Way didn’t immediately respond to CoStar News requests seeking details or what hotel brand the revamped property will be branded under.
99 Washington will be overseen by FCL Management, an operator of housing and hospitality properties in select markets across the United States, Hawkins Way said.
The 50-story property was built in 2012 before opening as a Holiday Inn in 2014, according to CoStar data. Brand owner IHG said in 2014 the 453-plus-foot-tall tower, featuring "spectacular views" of the Hudson River and One World Trade Center, was set to play a role "in the revitalization of Manhattan’s historic Financial District."
The purchase comes as the tourism level in New York has recovered to just shy of the pre-pandemic level, helping to drive the 12-month average daily rate to a record high of $324, according to CoStar data.
Crain’s New York earlier reported the deal.