JLL’s Hotels & Hospitality Group has closed the sale of 525 Lexington Ave., a 35-story, 655-key, full-service hotel in New York City’s Midtown East neighborhood. The parties have agreed to not disclose the purchase price.
JLL represented the seller, Deka Immobilien, in the sale to a joint venture of Hawkins Way Capital and Värde Partners. The hotel, which was formerly branded as the Marriott New York East Side, was closed at the time of sale and offered unencumbered by brand and management.
Originally constructed in 1922 as one of the first skyscraper residential hotels, the hotel received landmark status in 2016 cementing its historic significance to Midtown. The transit-oriented hotel is located within walking distance of nine subway lines providing access to all five boroughs. The property is also within walking distance of popular tourist sites, including Bryant Park, New York Public Library, Grand Central Terminal, Grand Central Market, Chrysler Building and more.
The JLL Hotels & Hospitality team representing the seller was led by Jeffrey Davis, cohead of U.S. investment sales/senior managing director and global CEO Gilda Perez-Alvarado, with support from EVP Stephany Chen and Bob Knakal, chairman, NY investment sales.
“New York City is experiencing a renewed interest among investors as lodging fundamentals rebound at phenomenal levels,” said Davis. “We anticipate continued interest among groups for strategic opportunities as the city continues to recover.”
Click here to view our one-on-one interview with Perez-Alvarado.