The holiday season is usually pretty slow for commercial real estate transactions but Manhattan saw two record setting deals that saw the year finish with a bang.
Hilton Sells the Waldorf Astoria
It’s hard to imagine Hilton without conjuring up images of the world famous Waldorf Astoria. The hotel (in it’s current state) opened in at 301 Park in 1931 and quickly gained a reputation for its luxury accommodations and celebrity guests. Hotelier Conrad Hilton first acquired management rights for the property in 1949 then purchased the hotel outright in 1972 making it a key owned asset for the company’s largely franchised business model. While the company is parting with a key part of it’s business, it did so for $1.95 billion making it the most expensive hotel transaction in history. The company will conduct a full renovation and keep it under the Hilton umbrella for the next century as part of a 100-year management agreement.
Crown Building Acquired for $1.75 Billion
General Growth Properties Inc. acquired the Crown Building at 730 Fifth Avenue for $1.75 billion setting a record price per square foot (for another $200 million they could have bought the Waldorf). The 390,000 square foot property averaged $448 per square foot and contains 50,000 square feet of retail space.
Photo credit: Ashley Ringrose