NEW YORK CITY-Gehr Development has acquired the Four Points by Sheraton Midtown Times Square, in a $170 million recapitalization of the adjacent hotel, bought by Gehr in 2009. The newest New York hotel in its portfolio was bought for $112 million--roughly $460,000 per key--and represents the ongoing and voracious appetite for hotel properties in the New York City market.

The Fairfield Inn & Suites, at 330 W. 40^th St., and the recently acquired property, at 326 W. 40^th St., will continue to operate separately, David Lifschitz, president of the Gehr Group, tells GlobeSt.com. “These are extremely strong brands and both properties are at the top performance in their respective brand so there is really no reason for us to do anything but continue operating them,” he says.

“We actually originally intended to buy both hotels,” Lifschitz says of the 2009 purchase. “At the time, because of the financial climate, there were no lenders in sight for hospitality properties.”

Gehr Development, the real estate arm of the Gehr Group, was represented in the deal by Tom McConnell, Jared Kelso and Ernest Lee of Cushman & Wakefield Sonnenblick Goldman’s US Hospitality Group.

“There continues to be very strong demand for well located, high quality hotel assets in New York City,” Kelso, a senior director, said of the transaction in a release. “Gehr Development recognized an opportunity to capitalize on the strength of the market to leverage an existing asset in order to expand its New York portfolio.”

As for future purchases in this arena, Lifschitz, the Gehr Group president, continues to keep a watchful eye, though he notes that turnaround opportunities--so big in the city now--are not Gehr’s purview.

“We are always looking for opportunities in New York,” Lifschitz says, adding that the group is often approached about opportunities in the New York hospitality sector. “There are not that many transactions in that market, other than people buying older properties and trying to renovate them--and that’s a whole different ballgame. We prefer well performing properties that are currently successful.”