GFI, Dune Acquire $40M Leasehold Interest

NEW YORK CITY-A joint venture of GFI Development Co. LLC and the Dune Real Estate Funds acquired a long-term leasehold interest in 1186 Broadway, also known as the Breslin Hotel. The leasehold interest was acquired from Broadway Breslin Associates LLC, an affiliate of the Haddad Organization, for $40 million. The new lessee intends to undertake a substantial renovation of the property.

The Breslin Hotel was opened in 1904 and is a 12-story structure with retail on the ground floor. A source close to the deal could not project a renovation cost at this time. The source also could not detail any further information on what the renovation would entail by press time.

The fee interest is owned by the Lillian Goldman Family LLC and the Estate of Lillian Goldman. Acquisition and construction financing of up to $75 million was provided by HSBC Bank USA, National Association and West LB AG, New York Branch. The hotel will be managed by Ace Hotel Group.