HREC Arranges Development Joint Venture in Manhattan
JUNE 26, 2008. HREC Investment Advisors successfully represented West 37th Street Owner, LLC and Stonebridge Realty Advisors, Inc. in formulating a joint venture to develop a 220-room select service hotel on West 37th St., New York, NY between 8th and 9th Avenue. The project is currently being contemplated as boutique hotel or a primary brand in the select service category. Estimated project cost is $90 million and debt and equity placements are nearing completion, a testament to the strength of the project and the development team in a difficult capital market.
The emerging Midtown West market of Manhattan offers a strategic location relative to the redeveloping Penn Station area, the Jacob Javits Convention Center, the West Side Rail Yards project, as well as proximity to Times Square. This will be Stonebridge's first project in Manhattan.
Geoff Davis, President of HREC Investment Advisors stated, "We were pleased that we were able to assist in structuring a joint venture between the land owner and Stonebridge. We have worked extensively with Stonebridge in other markets and expect they will be very successful on the big stage of New York, they know how to get a project done on time and on budget."
Navin Dimond, President and CEO of Stonebridge Companies commented "Stonebridge continues to grow and we have been looking at the New York market for some time, but felt this project had all the right ingredients in terms of location, concept and upside potential of the area. We look forward to doing additional projects in New York and to growing our platform on a national basis. HREC's ability to bring us an off-market deal was a key factor in structuring an equitable deal for us and our JV partner."
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