Kash Group, SHEL Capital buy Manhattan icon
FelCor Lodging Trust Inc. has sold its 117-key Morgans New York hotel in midtown Manhattan’s Murray Hill neighborhood for gross proceeds of $37 million. New York real estate investor Shlomo Bakhash’s Kash Group and local real estate firm SHEL Capital acquired the property in a sale arranged by JLL’s Hotels & Hospitality Group on behalf of FelCor. JLL international director Jeffrey Davis, managing director Gilda Perez-Alvarado and vice president Michael Reiss led the hospitality real estate advisory firm’s team on the transaction.
The new owners plan to convert the building into a micro-unit condominium, according to multiple reports that were published last month. Located on Madison Avenue and 38th Street, the high-profile hotel—which features a cocktail bar and lounge, as well as a duplex penthouse suite—closed permanently on Friday, July 14 in anticipation of the conversion.
The Irving, Texas-based real estate investment trust bought both Morgans and Royalton New York (both icons launched by hotel legend Ian Schrager) for a total of $140 million in 2011, and announced plans to sell them in January of last year. Royalton New York remains under contract. The deal is expected to close in early August for gross proceeds of $55 million.
FelCor is also continuing its efforts to sell The Knickerbocker in Manhattan’s Times Square.
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