By Konrad Putzier
Soho Properties and MHP Real Estate Services will turn the former Parsons building at 560 Seventh Avenue into into the city’s latest Dream Hotel – a brand run by Hampshire Hotels Management.
The Times Square development will field an additional 20,000 s/f of retail space, with a total project value of around $300 million. The buyers have now closed on the purchase of the building, completing a deal first publicized in October. A spokesperson told Real Estate Weekly that the property traded for $63 million.
It wasn’t immediately clear whether the developers plan to tear down the old building completely, or how many square feet the new development will have. MHP and Soho Properties couldn’t immediately be reached for comment.
The building recently housed the Parsons The New School of Design. Parsons had received it as a gift from philanthropist Albert List in 1978. Bob Knakal and Dave Kalish, of Massey Knakal Realty Services, were the brokers, as Real Estate Weekly previously reported.
The fashion and design school had announced in early 2013 that it would sell the building and move to Greenwich Village.
One complicating factor in the acquisition was the synagogue Garment Center Congregation, which has leased space on the building’s ground floor through 2076. According to a spokesperson, the developers agreed to provide the synagogue with temporary housing during construction. Following construction, the congregation will move back in.
“We are thrilled to complete this acquisition with the addition of our partner Hampshire Hotels, and begin the process of creating a brilliant, cutting-edge hotel that will bring a new level of excitement and luxury to the southern edge of the Times Square neighborhood,” Sharif El-Gamal, the Chairman and CEO of Soho Properties, said in a press statement.
“We are especially pleased to accomplish our business goals while preserving an important historic religious institution.”