Savills Studley has advised Germany’s Deka Immobilien on the $270M acquisition of the Marriott East Side Hotel in New York City, under a joint venture with Ashkenazy Acquisition Corporation (AAC). This is Deka’s first hotel acquisition in the Americas. The seller of the four-star hotel was Morgan Stanley.
The 35-story hotel, located at 525 Lexington Avenue, was built in 1924 by architect Arthur Loomis, whose firm also designed the Empire State Building. The property offers 655 rooms and a conference and business center, and is centrally located in New York's Midtown Manhattan area. The property will be operated as a Marriott hotel under a long-term agreement.
Savills Studley’s US Cross Border Investment team, led by executive managing director Robert Stamm, advised Deka on the acquisition.
This is the second joint venture investment Deka-Immobilien Global has concluded with AAC in New York, the first being the purchase of the retail condominium at 522 Fifth Avenue.
“We are pleased to bring Deka and Ashkenazy together on another synergistic venture in Manhattan. The investment structure for the Marriott East Side provides Deka with predictable annual cash flow and future upside in one of the world’s most defensive hospitality markets,” said Stamm.
The investment allows Deka to participate in the positive performance of the highest-priced hotel market in the US, a market that also enjoys the country's highest occupancy rates. The acquisition also expands Deka’s portfolio holdings in the US, another important component of the regional allocation of Deka-ImmobilienGlobal.
Over the last few years, Stamm’s team has advised Deka on over $2 billion of transactions in North America.