Great Eagle Buys Setai Fifth Avenue Hotel for $229 Million
Alessia Pirolo Oct. 9, 2012, 2:30 p.m.
Hong Kong-based Great Eagle has agreed to purchase the Setai Fifth Avenue Hotel from 400 Fifth Realty for $229 million, the developer Bizzi & Partners Development announced. Great Eagle’s management arm, Langham Hotels International, which already owns hotels in Boston, Chicago and Los Angeles, will manage the 214-room hotel, while floors 31 through 60 will remain one- to six-bedroom condos.
Great Eagle’s board of directors pointed out in a written statement that the closing–which is scheduled to occur on January 15, 2013–is conditional upon, among other things, the release of the property from the lien of a mortgage for an amount not to exceed the offer of $229 million. According to public records, in 2008 Unicredit Banca d’Impresa Spa provided a $385.6 million loan on the vacant lots where the Setai Fifth Avenue hotel was built in 2010. “The hotel will be sold free and clear of any mortgages,” Andrus Laurits, chief operations officer for Bizzi & Partners Development, said to The Commercial Observer.
“400 Fifth Avenue represents the ultimate in contemporary luxury and a tradition of sophisticated service, and we are excited to align with a hotel owner-operator that epitomizes this sensibility,” said Davide Bizzi, chairman of Bizzi & Partners Development. “Langham Place is a perfect fit for 400 Fifth Avenue and is sure to enhance and expand our homeowner proposition.”