A Rhode Island-based hotel investor has offloaded a portfolio of four Manhattan hotels for $489.8 million.
A fund managed by MCM, formerly Magna Capital Management, sold the portfolio of non-union hotels to a group of large institutional investors. Another MCM fund will retain partial ownership, According to costarwho first reported the deal.
A spokesperson for MCM, which shares an address with Magna Hospitality Group but is a separate company, declined to comment.
The portfolio includes the Hilton Garden Inn New York Times Square North, The Motto by Hilton New York City Chelsea, The Leasehold for the Doubletree by Hilton New York Times Square South and the leasehold for the Fairfield Inn & Suites New York Midtown Manhattan Penn Station.
The company will Hold a minority interest After trading more than 90 percent of his equity in the properties, Crain’s reported.
JLL brokered the deal, which marks the largest Big Apple Hotel Sale as the Safe Hotels Act went into effect in May. Critics of the law predicted that it would hurt the value of non-union hotels by raising costs and eroding their cost advantage. So far that doesn’t seem to be the case.
MCM purchased the 21-story hotel building at 30 West 46th Street from Concord Hospitality in 2021 for $88.5 million and opened the 196-key Hilton Garden Inn New York Times Square North. The company sold the property for $115.5 million.
A deed on file with the city shows a sale price of $92 million but does not include the value of personal property that is part of the final sale price, a source said. City National Bank provided a $77 million loan for the purchase, property records show
MCM purchased the hotel property 113 West 24th Street in Chelsea for $74.2 million in 2019, when it was still under construction. It opened the 374-key motto by Hilton in December 2021 and sold it for $222 million. A deed filed with the city shows a sale price of $168.6 million. Apollo Global Management offered a $105 million loan.
A limited liability company linked to MCM took over the leasehold of 523 Achth Avenue in 2021 in a deal valued at $47.4 million. It sold the 320-key Times Square Property, a Hilton doubletree, for $99.8 million.
MCM paid $57.4 million to purchase the senior loan and take over the leasehold for the 239-key Marriott at 325 West 33rd Street in 2020. It sold the property for $52.3 million.
The relationship between Magna and MCM is unclear. Magna is known for picking up distressed hotel properties and went on a Manhattan buying spree during the pandemic. In July, MCM made a $10 million credit bid for Joe Moinian’s Midtown Hilton Garden Inn in a UCC auction, giving it a path to acquire the property.
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