NEW YORK CITY-The Jumeirah Essex House, the iconic 81-year-old hotel overlooking Central Park, will officially change hands this fall. Chicago-based REIT Strategic Hotels & Resorts, Inc. has signed an agreement to purchase the landmark building from Dubai Investment Group for $362.3 million, expected to close on or before Sept. 7, the company unveiled officially on Friday.

The transaction equates to a purchase price of approximately $685,000 per unit based on 518 units, including 509 guest rooms and nine condominiums. As part of the deal, the REIT plans to rebrand the hotel as a JW Marriott, making it the second time Essex House has flown the Marriott flag in the property’s history.

In a statement, Laurence Geller, president and CEO of Strategic Hotels, says the combination of the Essex House Central Park South location and the REIT’s relationship with Marriott "clearly positions" the hotel for success. “We will continue to evaluate and act upon prudent hotel investments that complement our portfolio and create shareholder value,” he adds.

Known for its distinctive red sign over Central Park South, the hotel was constructed in 1929 by renowned architect Frank Grad. On January 16, 2006, Dubai Investment Group—who purchased the property for $440 million under its Jumeriah Group title—took over the hotel from Nikko Hotels, who owned and managed the building since 1985. Before that, Marriott purchased the hotel in 1969.

Now under the REIT’s new 50-year management agreement with Marriott International, Marriott will guarantee the net operating income of the hotel up to $21.5 million per year for a period of eight years, subject to a maximum funding by Marriott of $14 million in 2013 and $12 million in each year from 2014 to 2020.

On Strategic’s end, the company plans to invest approximately $18.3 million in property improvements, including renovations to common areas, system upgrades and new signage and branding efforts. On the finance side, the company arranged $190 million in first mortgage financing from Bank of America toward the deal, and the balance of the purchase price will be funded in cash. The REIT is currently is evaluating joint venture options and other alternatives, including asset sales, as capital sources to fund the balance of the acquisition.

Strategic – a company with 17 hotels and 7,762 rooms throughout the United States, Mexico and Europe in its portfolio – also operates Marriott-flagged properties such as the Marriott Grosvenor Square in London and the Marriott Hamburg in Germany.