NEW YORK CITY—Maefield Development has closed on its $540 million purchase of the leasehold interest in the DoubleTree Suites by Hilton Hotel New York City-Times Square—located at 1568 Broadway—from Sunstone Hotel Investors. The acquisition is part of a planned redevelopment of the 468-room property into a cultural, entertainment, retail and hospitality destination.

Highlights of the redevelopment include a renovated luxury hotel; the restoration and expansion of the Palace Theatre and, according to the Wall Street Journal, approximately 66,000 square feet of retail space and 40,000 square feet of entertainment space that could include fine dining, bars and a night club. The city's Landmarks Preservation Commission has authorized the addition of 10,000 square feet of space to the Palace.

In a statement, Maefield says, "We believe Times Square is the most important pedestrian urban space in North America. It is a global attraction that generates ten percent of New York City's economic output in less than one tenth of one percent of its land mass. Our development here fulfills the goals of the Times Square special district with its desired mix of entertainment-oriented multi-use programming including a theater and cultural focus."