Marcus & Millichap Gives New Life to One of New York City’s Oldest Hotels
24 November 2021 - 5:30PM
Business Wire
Marcus & Millichap (NYSE: MMI), a leading commercial real
estate brokerage firm specializing in investment sales, financing,
research and advisory services, announced the sale of Martinique
New York on Broadway, a 531-room landmark hotel on the corner of
32nd Street and Broadway in Manhattan. The asset was purchased for
$55.5 million with an approximated total development cost of $110
million.
“Our team worked tirelessly over the past 12 months to overcome
multiple hurdles during the sales process,” said Eric Anton of
Marcus & Millichap’s Manhattan office. “We are very proud to be
a part of what will be an incredible revitalization project for one
of New York’s oldest operating hotels. The COVID-19 pandemic
initially wreaked havoc on the hospitality industry in New York
City, causing countless established hotels and retail properties to
close shop, including Martinique New York, which filed for
bankruptcy in 2020.”
In December 2020, Marcus & Millichap’s Anton, Nelson Lee,
and their team, were hired by the hotel’s owners, Herald Hotel
Associates, LP, a private, New York-based, family-run company to
sell the property. Anton’s first order of business was to find a
buyer for the hotel, ultimately selecting Burnett Equities, based
in Oklahoma City. Once the land lease details were solidified,
Anton and Lee turned their attention to creating value in the
retail space.
“The Martinique corners two of Manhattan’s iconic streets, 32nd
Street, on one end of the city’s expansive Koreatown neighborhood,
and Broadway, home to some of the city’s most illustrious
restaurants, entertainment venues and hotels,” said Anton.
Anton and Lee introduced Burnett Equities to local retail
brokers, including one who specialized in leasing Koreatown space,
and the other an expert in the restaurant and hospitality industry.
In under three months, the team secured leases for all six of the
retail spots amid the pandemic, prior to closing the sale of the
hotel.
During the marketing process, Anton utilized Mission Capital
Debt & Equity, part of Marcus & Millichap Capital
Corporation (MMCC). With assistance from MMCC’s Matthew Polci,
Steven Buchwald, Jordan Ray and Lexington Henn, Burnett Equities
secured a mortgage of $71 million and a more financeable ground
lease.
“The Martinique New York had just about every major complexity
imaginable for a New York City financing, including a New York City
landmarked, unionized hotel subject to a ground lease that was
coming out of construction, COVID-19 lockdown, and in bankruptcy,
with a largely vacant retail component,” said Polci. “Despite these
challenges our borrower, their retail leasing team, and our Marcus
& Millichap sales brokers did a tremendous job turning
challenges into value creation opportunities. I was impressed with
our capital markets team, particularly my team members in their
ability to effectively communicate the evolving merits of this deal
to the debt markets and create a competitive market around such a
complex transaction.”
“With all the problems that COVID-19 brought, great
opportunities arose for those willing to go the distance,” said
Lee. “Our buyer sought opportunities to break into the New York
market, but the right opportunity hadn’t yet come to fruition. This
rare opportunity to invest in a newly renovated, historical
landmark was a special opportunity, and when prices went down and
business was scarce, our buyer saw the massive growth potential and
future resurgence of the hospitality industry through the
Martinique investment.”
“The Martinique’s historical value and prime location are what
sets it apart. Steps away from Herald Square and nearly every
subway train in the city, a five-minute walk from Grand Central,
Martinique New York will be at the forefront of the hospitality
industry for years to come,” said Anton.
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals
located throughout the United States and Canada, Marcus &
Millichap is a leading specialist in commercial real estate
investment sales, financing, research and advisory services.
Founded in 1971, the firm closed 8,954 transactions in 2020 with a
value of approximately $43 billion. Marcus & Millichap has
perfected a powerful system for marketing properties that combines
investment specialization, local market expertise, the industry’s
most comprehensive research, state-of-the-art technology, and
relationships with the largest pool of qualified investors. To
learn more, please visit: www.MarcusMillichap.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20211124005872/en/
Gina Relva, VP of Public Relations
Gina.Relva@marcusmillichap.com 510-999-1284
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