NEW YORK, Feb. 29, 2016 /PRNewswire/ -- Morris Moinian's Fortuna Realty Group, LLC announced today that it has finalized a transaction to acquire a Wyndham franchised hotel located at 37 West 24th Street in the Flatiron District. The new acquisition is set to join the ranks of the real-estate investment and development company's portfolio of lifestyle hotels including Hotel Hugo, Hotel Indigo Chelsea and The Garden City Hotel. The firm is vertically integrated with a proven track record in acquiring, developing and managing hotels. Represented by Wayne Cook and David Glanz of prominent law firm Windels Marx, LLP and lender U.S. Trust, Bank of America, Fortuna Realty Group, LLC inked the $60 million deal for the property, which was placed into contract at an auction on December 15, 2015.
Fortuna successfully navigated the cumbersome bankruptcy sales process to ultimately purchase the underperforming property significantly below market value on a replacement cost and per key basis. The purchase yields a strongly cash flowing asset to Fortuna Realty Group's portfolio with significant near term upside potential. Fortuna plans to convert the 124-key hotel—which was built in 2008—into a high-end boutique hotel, bringing a new lifestyle focus to the Flatiron District neighborhood. Fortuna Realty Group's acquisition is a sign of continued confidence in the hospitality industry.
The hotel is ideally situated on a prime block directly off Fifth Avenue and around the corner from Mario Batali's acclaimed Italian marketplace Eataly and Madison Square Park, as well as Steven Witkoff's 10 Madison Square West. The hotel's neighborhood has emerged as the location of choice for New York's growing TAMI (technology, advertising, marketing and information technology) sector and is a hub for boutique hotels, chef-driven restaurants, nightclubs and high-end condominium developments.
"I'd like to extend my deepest gratitude to the teams at Windels Marx and U.S. Trust, Bank of America, as well as to our internal Fortuna Realty team spearheaded by Ashish Lall, for their expeditious efforts in ensuring the success of this transaction," said Morris Moinian, President and Founder of Fortuna Realty Group, LLC. "We're thrilled to add this new property to our portfolio and are excited at the prospect of bringing a new luxury lifestyle element to the Flatiron district."
For more information about Fortuna Realty Group, LLC, please visit http://fortunarealtygroup.com/ .
SOURCE Fortuna Realty Group, LLC