Rockpoint Group has bought the Milford Plaza Hotel in New York’s theatre district in a deal valued at between $230 million and $240 million, people familiar with the matter have said.
The New York-based firm partnered with hospitality investment company Highgate Holdings to close the deal, Rockpoint said in a statement.
Sources told PERE the venture expects to invest more than $75 million of additional equity for a complete renovation of the 1,300-room hotel on Eighth Avenue between 44th Street and 45th Street.
The property had been owned by the Milstein family since 1978 and closed to the public in December 2009 for a major facelift, completion of which had been expected in October 2011. However, that redesign was put on hold by the Milstein family earlier this year, with the hotel placed on the market by the summer. No mortgage is reportedly held on the Milford Plaza Hotel, nicknamed the “Lullabuy of Broadway”.
Rockpoint has closed roughly 20 deals in the past 15 months, including the acquisition of 49 percent stakes in New York office buildings at 55 East 52nd Street and 299 Park Avenue from development and investment firm Fisher Brothers. The deals, which closed in July and January, respectively, valued the properties at $671.3 million and $630 million, according to estimates from data provider Real Capital Analytics.
Rockpoint also acquired an 82 million square foot development site comprising two golf courses, office condos and land in Tempe, Arizona with Sunbelt Holdings for an undisclosed sum in August, as well as buying two office properties on K Street in Washington DC in a venture with MRP Realty for $243.2 million in June.
Hodges Ward Elliott acted as broker.