Soho Properties And MHP Real Estate Services Join With Hampshire Hotels Management To Close On Acquisition Of 560 Seventh Avenue

NEW YORK, April 8, 2014 /PRNewswire/ -- Developer Soho Properties and MHP Real Estate Services, with international hotelier Hampshire Hotels Management LLC, announced the acquisition of 560 Seventh Avenue as a part of a development project valued in excess of $300 million, to make way for the creation of a new hotel and retail property to anchor the transformed Times Square market.

The property, which once housed the Parsons School of Design along with the active Garment Center Congregation, is located on the northwest corner of 40th Street, at the gateway to Times Square. Together, Soho Properties, MHP and Hampshire Hotels will build a world-class luxury Dream Hotel and 20,000 square-foot luxury shopping experience at 560 Seventh Avenue. Hampshire is the creator of an international portfolio of high-end boutique hotels, including the Dream Hotel brand.

"We are thrilled to complete this acquisition with the addition of our partner Hampshire Hotels, and begin the process of creating a brilliant, cutting-edge hotel that will bring a new level of excitement and luxury to the southern edge of the Times Square neighborhood," said Sharif El-Gamal, the Chairman and CEO of Soho Properties. "We are especially pleased to accomplish our business goals while preserving an important historic religious institution."

Added David Sturner, Principal/COO of MHP, "As long-timer buyers of prime real estate in New York, we are excited to complete this transaction with our partners, Soho Properties and Hampshire Hotels. We look forward to transforming this property into a luxury hotel with 20,000 square-feet of destination retail at this dynamic Times Square corner location. The property will be completely re-imagined and will be a terrific addition to perhaps the most visited area in New York. We also want to thank the Garment Center Congregation, who played an important part in moving this project forward."

The Dream Hotel is an inspiring boutique hotel collection that features ultra-modern destinations that are playful in ambiance and luxurious in service. Properties are located in major cities in the U.S. and internationally and feature such whimsical design details as labyrinthine lobbies, aquarium columns, serene mood lighting and wistful decor combining traditional and modern elements

"The southern end of the Times Square District has clearly transformed into a formidable business corridor and we see this important address as a strategic addition to the Dream portfolio. In addition to our trend-setting and vibrant room design and facilities, Dream will bring a host of energetic and exciting food and beverage offerings from world class operators to enliven the experience for guests and the neighborhood alike," said Eric Danziger, President and CEO of Hampshire Hotels Management. " The partnership with Soho Properties and MHP, and their vast and unique experiences, combine for a truly magnificent project and product. We couldn't be more pleased to advance this new Dream with these wonderful partners."

Bob Knakal, chairman of Massey Knakal Realty Services, who brokered the deal, said "This transaction is indicative of the growing allure of a rapidly expanding Times Square District. It was also one of those unusual transactions that was a great deal for both the seller and the buyer."

Eran Nornberg, president of Atum Equity, who will be managing the hotel's development in concert with Hampshire Hotels, said of the project, "We are excited to develop another successful Dream product on the heels of the flagship property Dream Downtown and look forward to working alongside such stellar partners."

In addition to creating this new destination hotel and retail property, the developers previously reached an agreement to secure the future of the Garment Center Congregation that has called the site home by financing the temporary relocation of the Congregation and incorporating a beautiful new sanctuary into the development plans.

About Soho Properties:

Soho Properties, Inc. is a commercial real estate investment firm and owner of office, multi-family and retail developments founded by Sharif El-Gamal in 2003 in New York City. The Soho Properties team arranges and participates in real estate investments in office, residential and retail property markets in New York City, generating opportunities for its clients through the acquisition of both single assets as well as portfolios, and has executed over $1 billion in New York City transactions since its inception.

About MHP Real Estate Services:

MHP Real Estate Services is a full service firm that owns, leases and manages more than six million square feet of commercial office space in New York and has bought and sold more than 150 properties valued in excess of $11 billion since inception in 1971. The 75 member firm includes acquisition/disposition, brokerage, project management and asset management divisions. MHP has, among others, owned such iconic buildings as One Park Avenue, 530 Fifth Avenue, 450 Lexington Avenue, The Brill Building at 1619 Broadway, 1180 Avenue of the Americas and One Pepsi Way in Somers, NY.

About Hampshire Hotels Management

A leader in managed properties worldwide, Hampshire Hotels Management, LLC owns and manages hotels in New York and Miami as well as the United Kingdom, Thailand and India. Founded in 1986 by Sant Singh Chatwal, the New York-based company owns over 3,000 hotel rooms and oversees the development and expansion of both its luxury and lifestyle brands, including Dream Hotels, Night Hotels and The Chatwal.  Hampshire Hotels Management is committed to offering travelers an authentic connection to their chosen destination through modern and innovative hospitality design, premier service and locally relevant food and beverage operations. The company's strong brand relationships with leading hotel franchises such as Wyndham Hotel Group, Hilton Worldwide, Starwood Hotels and Resorts, Leading Hotels and Resorts, Preferred Hotels and Resorts, Fairmont Hotels and Resorts, and Best Western strengthens its ability to achieve its growth potential and expand its portfolio in the four- and five-star franchised hotel market. Hampshire Hotels Management, LLC's corporate offices are located at 200 West 55th Street, New York, NY. the local presence required to identify and execute complex transactions.

About Atum Equity

Atum Equity is an international real estate investment and management company with extensive holding and development experience in commercial and residential properties in New York City.

Contact:
Eric Gerard – Email
Roxanne Donovan – Email
212-741-2977

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SOURCE Soho Properties