Kriss Feuerstein, King Spalding Steer $270M NY Hotel Deal

As seen in Law360 – by Andrew McIntyre

Kriss & Feuerstein LLP represented an affiliate of Ashkenazy Acquisition Corp. in its $270 million purchase of a New York Marriott hotel from an entity affiliated with Morgan Stanley Real Estate Advisor Inc., which had counsel on the deal from King & Spalding.

The 655-room New York Marriott East Side has changed hands in a $270 million deal. (Credit: AP)

The deal for the 655-room New York Marriott East Side hit public records on Monday.

The 655-room New York Marriott East Side has changed hands in a $270 million deal. (Credit: AP)

Earlier media reportssaid Ashkenazy was paying about $290 million.

The 35-story property is at 525 Lexington Ave. near Grand Central Terminal. It offers rates from $219 per night, according to its website.

The hotel has 635 rooms and 20 suites, and 18,000 square feet of meeting and event space. It also has a 24-hour fitness center on the 35th floor.

Morgan Stanley Real Estate Advisor, a U.S. Securities and Exchange Commission-registered adviser, was set up in 2003. Morgan Stanley bought the hotel in November 2005 for $287 million.

The deed filed Monday lists an Atlanta address for Morgan Stanley Real Estate Advisor.

Ashkenazy Acquisition invests in office, retail and residential properties in the U.S., Canada and the United Kingdom. The company says it owns more than 100 properties collectively worth more than $10 billion.

Among Ashkenazy’s other New York properties are the nearly 600,000-square-foot 625 Madison Ave. office tower, two retail floors of 522 Fifth Ave., and 635 Madison Ave., an office and retail property.

Ashkenazy Acquisition, based in New York, and Morgan Stanley couldn’t be immediately reached for comment Monday.

The buyer is Lexington Avenue Hotel LP, according to the deed filed Monday. The seller is PPF 525 Lexington Avenue LLC.

The New York City real property transfer tax for the deal is nearly $7.1 million, and New York State transfer tax is $1.08 million.

Andrew Charles, counsel for the seller, declined to comment Monday. Counsel for the buyer couldn’t be immediately reached for comment.

Shares in Morgan Stanley rose 0.95 percent Monday to $38.25.

The buyer is represented by David S. Kriss of Kriss & Feuerstein LLP.

The seller is represented by Andrew Charles and Jill P. Anderson of King & Spalding LLP.

–Additional reporting by Natalie Rodriguez. Editing by Brian Baresch.

 

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