Mandarin Oriental owners selling the hotel
The Mandarin Oriental Hotel in Columbus Circle, one of the city’s leading luxury accommodation establishments, is quietly on sale, Realty Check has learned.
The hotel’s offering of 248 rooms and suites overlooking Central Park comes as the state of the city’s hotel industry has been called a “depression” by the American Hotel and Lodging Association.
Although the Mandarin Oriental reopened on April 1, it was upset like other top hotels by the lack of visitors and high-spending business travelers from overseas.
The property is owned by an entity known as IW Columbus Center LLP, of which a subsidiary of the Investment Corporation of Dubai is the majority partner. Mandarin Oriental Hotel Group (MOHG), which owns some but not all of the hotels flying the Mandarin Oriental flag, owns a 25% stake and manages the Manhattan property under a long-term contract.
The offer of silence is managed by JLL. Jeffrey Davis, senior managing director of JLL’s Hotels and Hospitality Group, did not respond to the emails. A representative of the hotel confirmed its ownership structure but did not comment on the offer for sale.
MOHG also provides hotel services to 65 condominium apartments in the North Tower of Deutsche Bank Center, formerly known as Time Warner Center. The hotel itself is a separately owned condo unit within the mixed-use double-tower skyscraper that was developed by related companies.
An investment-sell source who is not involved in Mandarin Oriental speculated that in today’s struggling market, a sale could fetch as little as $ 100 million. The glamorous property was valued at $ 340 million in 2007.
The hotel occupies floors 35-54 and is known for its popular ballroom, five-star spa, and restaurants and bars, including the MO Lounge. Liam Neeson and Lucy Liu are among the regular guests.
Hotel Association of New York president Vijay Dandapani, noting that “foreign owners have their own problems” beyond the New York situation, would not speculate on a possible price. But he placed the Mandarin Oriental offering in the context of the hotel’s overall situation, which he called “grim.”
âEvery hotel has gone from a cash flow crisis to a liquidity crisis to a solvency crisis,â he said. The best news, Dandapani said, was that whoever the new owner was, “The Mandarin Oriental [at Columbus Circle] is not going anywhere. He will remain the Mandarin Oriental âbecause of the long-term contract – and because the company has to be in Manhattan.
The YAI International Academy of Hope is expanding and moving this fall to 825 Seventh Ave. The not-for-profit educational institution has secured a 30-year condominium leasehold interest from tower owners Vornado Realty Trust and Edward J. Minskoff Equities.
YAI will almost triple its space when it moves from 101 W. 116th St. The school, which provides services to students with brain injuries and disorders, needed more space and more modern facilities.
JLL vice president Matthew Astrachan, who replaced YAI with Simon Landmann and Zachary Azus from his company, explained that the deal is technically structured like a lease. The asking rent was in the range of $ 60 per square foot on an annual basis, he said.
YAI Managing Director George Contos said of the expansion and move: âFor the first time, we will be able to provide iHOPE students with a full range of educational and therapeutic services under one roof. . “
Astrachan said the school will use a new dedicated entrance on West 53d Street that will allow buses to drop off students on the right side, as required by city rules.
The owners were replaced by Edward Riguardi of Vornado, Jeffrey Sussman of Minskoff and John D. Ryan III of Avison Young.
Like many tenants who are unmoved by the chatter of âworking from home forever,â Lowenstein Sandler reaffirmed his commitment to Midtown. The national law firm has extended its lease and expanded to 1251 Sixth Ave., where it will now have 125,000 square feet on floors 17 through 19.
The company says it is “prioritizing and investing in a redesigned office space” for the “evolving needs” of its employees and customers.
The 23,000 square foot expansion on the 19th floor is long term, as is the rest of the lease. A source said the rent for the expansion will drop from $ 86 per square foot to $ 100 over 17.5 years. Lowenstein Sandler will receive 18 months of free rent and a Tenant Improvement Allowance of $ 150.
The cost is similar for the existing space and will also include 14 months of free rent, according to our source.
Michael Goldman of AttentivRE represented the tenant.
Bradford Allen, a Chicago-based brokerage and services firm, is expanding into Manhattan, headed by a prominent New York negotiator.
Glenn Isaacson, formerly at Cushman & Wakefield and CBRE before that, will be chairman of Bradford Allen New York, who has settled at 745 Fifth Ave. Isaacson’s 40-year career has included 20 million square feet of rental transactions. Among them: a recent giant renewal for the law firm Seyfarth Shaw at 620 Eighth Ave., the move of the Boston Consulting Group to Hudson Yards and the securing of space for Avenues: the World School’s first New York campus. .