Savills Studley Advises Deka Immobilien on Prime Midtown Hotel Acquisition
New York, NY (May 4, 2015)  

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.

About the Deka Group

DekaBank is the investment company of the German Savings Banks Finance Group. DekaBank and its subsidiaries form the Deka Group, which has total customer assets of around EUR 220 billion (as at 31 December 2014) and around four million securities accounts, making it one of the largest investment service providers in Germany. It provides access to a broad range of investment products and services for private and institutional investors. DekaBank is strongly anchored in the Sparkassen-Finanzgruppe and develops its portfolio of products and services to satisfy the requirements of its shareholders and its distribution partners in the securities business.

The Deka Group’s global property expertise is pooled in its Real Estate business division. Capital investment companies Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH manage and service property assets worth more than EUR 27 billion (as at 31 December 2014), jointly with service company Deka Immobilien GmbH. DekaBank’s property financing department is the second key element within the business division and generates a new business volume of some 2.5 billion Euros p.a.

About Savills Studley

Savills Studley is the leading commercial real estate services firm specializing in tenant representation. Founded in 1954, the firm pioneered the conflict-free business model of representing only tenants in their commercial real estate transactions. Today, supported by high quality market research and in-depth analysis, Savills Studley provides strategic real estate solutions to organizations across all industries. The firm’s comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With 29 offices in the U.S. and Canada, and a heritage of innovation, Savills Studley is well known for tenacious client advocacy and exceptional service.

The firm is part of London-headquartered Savills plc, the premier global real estate service provider with over 30,000 professionals and over 700 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L).

For more information, please visit www.savills-studley.com and follow us on Twitter @SavillsStudley and LinkedIn.