Andrew Farkas’ Island Capital is trying to get in on New York Metropolis’s booming resort market, providing the landmarked Lexington Resort in Midtown East on the market.
The actual property service provider financial institution and its three way partnership companions, Three Wall Capital and MCR, listed the 725-key resort, eyeing a value of about $275 million, The Actual Deal has discovered. The property is being marketed by Eastdil Secured.
The resort opened in 1929 and was given landmark standing in 2016. It boasts a storied previous, internet hosting Hollywood icons Marilyn Monroe and Joe DiMaggio in the course of the couple’s temporary marriage within the Nineteen Fifties.
As soon as a part of a bustling “resort row” stretching alongside Lexington Avenue from about 52nd to forty fifth Road, the hall has seen its resort stock shrink dramatically over the previous decade. The previous Midtown DoubleTree and Marriott East Facet have been repurposed as pupil housing, and the Midtown East Maxwell resort closed in 2020.
Elsewhere in Midtown, the enduring Waldorf Astoria has downsized from 1,400 to 375 rooms and the Roosevelt Resort will probably be bought and redeveloped as an workplace tower.
The Lexington stands because the final main “big-box” resort within the neighborhood, giving potential house owners the chance to grab on guests to the encompassing workplace towers, like JP Morgan Chase’s newly-opened headquarters one block to the west.
The property final modified palms in 2021, when the three way partnership acquired it for $185 million. The resort had been closed for the reason that pandemic and renovated by its earlier proprietor, DiamondRock Hospitality. It reopened beneath the Marriott Worldwide Autograph Assortment model shortly after.
The resort is hitting the market as New York’s occupancy charges method pre-pandemic ranges and town’s luxurious resort market surges on the again of rebounding tourism and enterprise journey.
The typical occupancy fee surpassed 84 p.c per week in 2024, up from a pandemic low of about 50 p.c, in accordance with a report by Lodging Analytics Analysis & Consulting. However bills tied to labor prices, excessive rates of interest and property taxes proceed to have an effect on the underside line.
Eastdil Secured declined to remark.
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