Blackstone Sells Midtown’s London Hotel to Abu Dhabi Fund For $382M
Liam La Guerre Nov. 25, 2015, 4:29 p.m.
Just a month after news broke about Blackstone Group’s plan to buy Stuyvesant Town-Peter Cooper Village for $5.3 billion, the private equity firm has sold The London NYC in Midtown to sovereign wealth fund for $382 million to Abu Dhabi Investment Authority (ADIA).
The sale of the 54-story, 563-key property at 151 West 54th Street between Avenue of the Americas and Seventh Avenue closed on Nov. 11, as The New York Post first reported.
ADIA also acquired the ground lease at the property, which is owned by the estate of Sol Goldman, and will pay $157 million through 2136, according to The Post. ADIA paid $194 million for the hotel and acquired the existing $154 million mortgage on the building, according to property records. It was not immediately clear how the remaining $34 million factored into the deal. Blackstone Group declined to comment.
An Eastdil Secured team of Roy March, Larry Wolfe and Mark Schoenholtz represented Blackstone in the sale. Messrs. March, Wolfe and Schoenholtz did not immediately return a request for comment.
Blackstone Group paid $193 million in 2005 for the hotel, according to property records. Reports about Blackstone Group and Ivanhoe Cambridge going into contract to purchase Stuy Town-Peter Cooper Village broke on Oct. 20. The buy of the property is expected to close on the 11,232-unit complex by the end of the year, as Commercial Observer previously reported.
In addition to The London NYC, ADIA also owns the Hyatt Times Square and the Marriott Edition near Madison Square Park. ADIA’s spokesman did not immediately respond to a request for comment.