Germany’s Deka Immobilien has made its first US hotel acquisition.
Savills Studley advised Deka Immobilien on the acquisition of the Marriott East Side Hotel in New York City, under a joint venture with Ashkenazy Acquisition Corporation (AAC).
The seller of the four-star hotel was Morgan Stanley. The purchase price was a reported $270 million, or approximately $412,000 per unit.
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. 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-ImmobilienGlobal has concluded with AAC in New York, the first being the purchase of the retail condominium at 522 Fifth Avenue.
The investment allows Deka to participate in the positive performance of the highest-priced hotel market in the US.