NEW YORK CITY-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the sale of the Standard High Line, but GlobeSt.com has learned that the hotel has been sold.
The 330-room hotel, at 848 Washington St. in the Meatpacking District, has been sold to Standard International—the same organization that manages the hotel—for more than $400 million, or about $1.2 million a room, reports the Real Deal. That price is reportedly a record for the Meatpacking District and nearly a record for the city.
Previously, it was widely reported that the property would be purchased by Steven Kantor, CEO of S2K Partners, but he actually was not involved in the deal.
Last fall, hotelier Andre Balazs—then at the helm of Standard—sold 80% of his interest in the company to an undisclosed buyer, reports Crain's New York. However, he retained ownership of the real estate, including at the Standard High Line. With this deal he sold the real estate at the Standard too.
Local investment fund Dune Capital Management and Westport, CT-based private equity firm Greenfield Partners, which owned the hotel with Balazs, also sold their stakes to Standard International. Calls requesting comment made to Standard International, Dune and Greenfield were not returned by press time. Inquiries placed with hotel analysts also did not receive a response; watch for a possible update to this story.
For Balazs, who tells Real Deal he is working on a pair of hotel projects in London, the sale should bring in a hefty return. He did not disclose his stake, but owner-operators can hold up to 20% of a property, analysts note.
Over the years, Greenfield and Dune had invested $240 million in the Standard, according to news reports. Sources close to the deal say Greenfield and Dune wanted to exit the property because they had to pay off funds that carry time limits on when capital must be returned to investors.
Per room, the deal ranks among the priciest ever in Manhattan, according to analysts. The W Union Square sold for more than $1 million a room in 2006, according to an industry report, and the Mandarin Oriental, at Columbus Circle, sold for more than $1.3 million a room in 2007, though that was for a partial stake.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
