NEW YORK CITY—Vornado Realty Trust has tripled its investment in the Crowne Plaza Times Square Manhattan. The REIT has ponied up $39 million to increase its ownership interest in the 795-room property to 33% from 11%.
Vornado co-invested with its 25% owned Real Estate Fund and one of the fund's limited partners to buy out the fund's joint venture partner's 57% interest in the property for approximately $95 million. The hotel's other owner is the City Investment Fund, a vehicle sponsored jointly by Fisher Bros. and the Morgan Stanley Real Estate Fund. Fisher Bros. representatives couldn't be reached by press time while Morgan Stanley declined to comment.
This transaction values the property at approximately $480 million. The property is encumbered by a newly placed $310 million mortgage loan bearing interest at LIBOR plus 2.80% and maturing in December 2018 with a one-year extension option.
The property features 7,700 square feet of retail space and associated signage, 197,000 square feet of office space, a 159-space parking garage and a health club.
The hotel industry is performing at record shattering levels. Said R. Mark Woodworth, senior managing director of PKF Hospitality Research, last month to Real Estate Forum-a sister publication of GlobeSt.com, “No matter what hotel performance indicator you look at for any type of hotel, we foresee extremely favorable movements the next few years.”
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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.
