Mack Real Estate has gained control of a portfolio of seven hotels for what appears to be a big discount.
The developer paid transfer taxes of $ 315.8 million – or less than 40 percent of the 2016 portfolio value of $ 816.3 million – for seven properties, all of which are in Manhattan.
Earlier this year, the company launched proceedings to close the UCC market against property owners, a joint venture between Hersha Hospitality Trust and the Chinese investment company Cindat Capital Management. These companies did not qualify for the $ 85 million mezzanine loan issued by Mack Real Estate Credit Strategies in 2018.
Portfolio hit the auction block On January 21, and according to the city’s transfer tax document, Mack appeared to be the winner.
Mack Real Estate declined to comment on the transaction. Hersha and Cindat did not respond immediately to requests for comments.
Seven hotels are located in Times Square, Chelsea, Herald Square and in the financial district operating under the Holiday Inn, Hampton Inn and Candlewood Suites brands. The properties are at 116 West 31st Street, 108 West 24th Street, 337 West 39th Street, 339 West 39th Street, 343 West 39th Street, 51 Nassau Street and 126 Water Street.
The portfolio was wholly owned by Hersha until 2016, when Philadelphia-based REIT sold a 70 percent majority stake in Cindat for the value of the deal. $ 571.4 million.
Hospitality was one of the worst affected by the pandemic economic downturn, when small and large hotel brands were forced give them the keys creditors. Owner Hilton hotel in Times Squarefor example, he handed over the property to one of his mortgage owners.