REIT Acquires Chelsea Holiday Inn
Carey Watermark Investors Inc. has acquired the Holiday Inn Manhattan 6th Avenue for $113 million, it was announced today.
“As the strongest performer of the top 25 hotel markets, New York City ranks first as the most active hotel investment market in the US,” said Michael Medzigan, chief executive officer of CWI, in a prepared statement. “The opportunity to enter the market through the acquisition of a relatively new, well-located property with an established operating history, strong initial cash returns and the potential for future appreciation made it an ideal investment for Carey Watermark.”
The total investment in the property for the non-traded REIT is approximately $121.4 million, which includes $8.4 million of planned capital improvements and acquisition-related costs. The acquisition was financed with $80 million in debt.
The 226-room, 24-story hotel is located at 125 West 26th Street and was built in 2008.
Carey Watermark, headquartered in New York, invests primarily in the lodging and lodging related sectors. Last month, CWI acquired the Hutton Hotel in Nashville, Tenn. for $73.6 million. Carey Watermark Investors will close to new investments in August of this year.
Calls to representatives of CWI were not immediately returned.