Munich-Based Company Drops $80M on Midtown Retail Space
Tobias Salinger June 10, 2014, 2:36 p.m.
GLL Real Estate Partners acquired a 17,000-square-foot ground floor retail space for $80 million in the 38-floor, 280-room Hilton Garden Inn currently nearing completion at 140 West 42nd Street, Crain’s New York Business reported Monday.
The complex deal saw the prime retail location change hands from a partnership between the Dallas-based Highgate Holdings hotel operator and development firm and the Chicago-based Walton Street Capital real estate private equity firm to the deep-pocketed Munich-based buyers of the property, a real estate investment firm.
The transaction, which calculates to more than $4,700 per square foot, means any potential tenants on the site will get foot traffic from both Bryant Park down the block and the bustling Times Square subway station, with an annual ridership of more than 63 million people, according to the Metropolitan Transportation Authority.
Highgate and Walton sold the hotel property itself to Diamond Rock Hospitality for almost $125 million in 2012, according to Crain’s.
Eastdil Secured brokers Adam Spies and Doug Harmon negotiated the deal, the story also reported. A spokeswoman for Eastdil Secured declined to comment and didn’t confirm whether the deal actually pertained to the 282-room hotel previously placed in published stories to 136 West 42nd Street.
Phone and email inquiries to GLL and Diamond Rock Hospitality were not immediately returned.
Eric Mogentale, a marketing and investor relations executive for Walton Street, wrote in an email, “We do not comment on our transactions, acquisitions, dispositions, or otherwise, other than through our own press releases (and none has been released on this particular transaction).”