American Realty Capital NYRR to Acquire Viceroy Hotel
Gus Delaporte Sept. 25, 2013, 11:15 a.m.
The American Realty Capital New York Recovery has agreed to acquire a leasehold interest in the Viceroy Hotel, the real estate investment trust announced Tuesday.
Located at 120 West 57th Street, the newly constructed hotel was designed by Roman and Williams and is set to open early next month. NYRR will pay developer ARK Real Estate $148.5 million, or $615,000 per key, for the hotel, according to an earlier report by the New York Post.
In a separate transaction, NYRR has agreed to acquire a preferred equity interest in 123 William Street for $40 million. The 27-story office property located in Manhattan’s Financial District boasts 513,000 rentable square feet.
“We are pleased to announce these pending acquisitions of two high-quality Manhattan assets,” said Michael Happel, chief investment officer of NYRR, in a prepared statement. “Once acquired, our total portfolio, at cost, will approach $1.0 billion, with approximately 90% of our portfolio, by purchase price, concentrated in Manhattan.”
The Viceroy Hotel will be managed by Viceroy Hotel Group which manages luxury hotels worldwide including locations in Miami, Beverly Hills, Snowmass, Abu Dhabi and the Maldives.
“We are excited to add our first hotel asset,” Mr. Happel added in the statement. “The hotel is in a prime location and will be operated by what we view as a best-in-class hotel manager, Viceroy Hotel Group.”
The deals for the Viceroy Hotel and 123 Williams Street were made without brokers, according to the Post.