One of New York City’s classic hotels, the Park Lane Hotel, at 36 Central Park South, has been sold for $660 million. The 605-room luxury hotel, with 47 floors and 446,000 square feet, is located between Fifth and Sixth avenues.
The property was sold by the Leona M. and Harry B. Helmsley Charitable Trust. Real estate magnate Harry Helmsley died in 1997 and his wife Leona passed away 10 years later.
The Witkoff Group led an investment consortium of Jynwel Capital, as majority investor, New Valley LLC, Highgate Holdings and Macklowe Properties. Wells Fargo and Criterion Real Estate Capital provided financing for the acquisition.
Jynwel was represented by Eric Landau, a partner and Marty Edelman, counsel, at Paul Hastings, who led a team that included associates Daniel Blaser, Lynn Feng, Heather Lockhart, Sharon Makowsky and Jeff Myers.
Douglas Heitner, a partner at Kasowitz, Benson, Torres & Friedman, and associate Christy Mazzola represented Witkoff and the other partner investors.
Marco Caffuzzi and Benjamin Needell, partners at Skadden, Arps, Slate, Meagher & Flom, along with associate Ryan Knutson represented the trust.
Alan Weil and Matthew Fernand, partners at Sidley Austin, and associate David Myers represented Wells Fargo.
Louis Hait,a partner at Kaye Scholer, and associates Keith Tagliavia, Eduard Cadmus and Chad Sandler represented Criterion.
“The Park Lane sits at the very center of retail and culture in Manhattan, with sweeping views of Central Park,” Steven Witkoff, chairman and CEO of The Witkoff Group, said in a statement. “We look forward to working with our partners to continue to operate the property as one of the preeminent hotels in New York City.”
Highgate Hotels will reportedly manage the property, which will be upgraded and rebranded as Park Lane New York. The hotel also has an outdoor garden terrace on the second floor adjacent to one of the ballrooms.
Jynwel, a subsidiary of Hong Kong-based Jynwel Capital Limited, is an international private-equity investment firm that focuses on high-value and long-term investment opportunity worldwide.
Founded in 1997, Witkoff has acquired more than 60 properties, spanning about 18 million square feet, including 12,000 residential units, in central business districts throughout the United States and London.
CBRE’s Darcy Stacom and William Shanahan, vice chairmen, and Paul Leibowitz, an executive vice president, handled the sale of the property for the trust.
Brookfield Office Properties Inc. has acquired One North End Ave. in lower Manhattan for $200 million.
The 15-story, 505,000-square-foot property is the headquarters of the New York Mercantile Exchange (NYMEX), which leases about 89 percent of the building. The remainder of the building is leased to exchange-related firms.
Battery Park City Authority (BPCA), a state agency that works in partnership with the Battery Park community, holds the ground lease on the property.
The building “has always unofficially been part of Brookfield Place and the opportunity to acquire and integrate the property was compelling,” Brookfield CEO Dennis Friedrich, said in a statement. Brookfield Place, formerly the World Financial Center, encompasses 8 million square feet and is undergoing a $250 million repositioning program.
The seller, New York Mercantile Exchange Inc., is an affiliate of Chicago-based CME Group Inc. CME operates trading facilities in New York, Chicago and Kansas City, Mo.
Brookfield was represented in-house by Kathleen Kane, senior vice president, and Jonathan Kramer, vice president and associate counsel.
A team from Fried, Frank, Harris, Shriver & Jacobson was Brookfield’s outside counsel. The team included Meyer Last and Joshua Mermelstein, partners; Joel London, special counsel; and associates Steven Fields, Andrew Frohlich, Karen Lee and Michael Werner.
Lary Wolf and Ezra Dyckman, partners at Roberts & Holland, along with associates Daniel Stahl and Aaron Gaynor, provided tax advice to Brookfield on the acquisition.
CME was represented in-house by Stephen Trimper, senior director and associate general counsel, in Chicago.
CME’s outside counsel was James Rosenbloom and Michael Manuel, principals at Goldberg Kohn, in Chicago. In addition, Manhattan-based counsel Joshua Stein and Deborah Goldman from the law firm of Joshua Stein, represented the seller.
BPCA was represented internally by general counsel Phyllis Taylor. Chris Smith, a partner at Shearman & Sterling,along with counsel Robert Sein also represented the agency.
One North End Ave. is a “highly specified office/trading building featuring a great waterfront,” said Friedrich. Through a leaseback, NYMEX will be consolidating its space to the lower portion of the building, decreasing its overall footage to 222,000 square feet, which is half the size of it its existing space, according to a news release. The principal floors involved are the second through eighth, including the trading floor, office space and other spaces.
As part of a renovation, Brookfield plans to “create a modern double-height galleried trading floor.” It also has plans to lease the top portion and rooftop terrace, overlooking the New York harbor and marina.
CME has locations in Houston and Washington, D.C., plus nine international offices, including Belfast, Hong Kong, São Paolo and Tokyo.
Brookfield’s portfolio is comprised of interests in 115 properties for a total of 85 million square feet in downtown areas of cities worldwide, including Denver, Los Angeles, Washington, D.C., London, Melbourne and Toronto.
Brookfield’s Andrew Osborne, senior vice president, acquisitions and dispositions, brokered the deal on behalf the commercial real estate group.
@|To report a real estate transaction, contact email@example.com.