Starwood Sells 1 Hotel Central Park for $265M
By Mark Hallum July 17, 2024 10:18 am
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Barry Sternlicht’s Starwood Capital is offloading a Plaza District hotel to a Maryland-based hospitality group for $265 million.
Host Hotels & Resorts purchased the building, currently under Sternlicht’s 1 Hotel Central Park brand, with a $150 million loan, according to property records made public Tuesday. The debt came from a lender whose identity is concealed behind a shell corporation associated with law firm Fried Frank.
The mortgage document was signed by Nathan Tyrrell, vice president of Host Hotels, as the mortgagee.
Representatives from Starwood and Host Hotels did not immediately respond to requests for comment.
Starwood is making a handsome profit on the hotel after buying it in 2011 for $72 million, according to property records. It scored a $165.2 million refinancing on the property in 2018 with a loan from United Overseas Bank, consolidating the existing $125 million debt that existed on the building at the time.
Host Hotels started in 1927 in Washington, D.C., as a single root beer stand. It now has more than 40 properties in its portfolio in the U.S. and Canada and $11.8 billion in assets under management as of the first quarter of 2024, according to the company’s website.
The hotel at 1414 Avenue of the Americas, at the southeast corner of West 58th Street and Avenue of the Americas, is 18 stories tall and was built in 1924. It has 229 rooms and in 2015 was branded the 1 Hotel Central Park, the brainchild of Sternlicht.
Mark Hallum can be reached at mhallum@commercialobserver.com.
Update: while property records indicated that the sale price $233 million, a spokesperson for Starwood confirmed that the total was actually $265 million.
