Deal is for the leasehold interest
Craig Spencer’s Arden Group has agreed to acquire the leasehold of the Viceroy Hotel from New York REIT (NYRT) for $41 million. The 240-key hotel spans 128,612 square feet, and is located at 120 West 57th Street.
Be Smart: NYRT paid $148.5 million from Ark Partners for the leasehold in 2013, according to TRD. With the excessive cost of terminating the existing management agreement and escalating lease payments, the Billionaires’ Row hotel sold at a stunning loss.
Acquisition financing: Arden Group secured $31 million in debt from Fortress Credit to close the deal.
Why it matters: NYRT’s Wendy Silverstein has now sold all of the REIT’s assets except for a 50.1 percent stake in One Worldwide Plaza. With the liquidation now complete, she has resigned and is rumored to be joining WeWork.