Fortress and others ink $200M Palace Theater deal

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Aug 2, 2017

 

The hotel portion of 1568 Broadway has been sold.

Maefield DevelopmentFortress Investment Group, and L&L Holding went into contract on the $200 million deal in August of 2015, but didnʼt close until last month, according to the Real Deal.

JPMorgan Chase (NYSE: JPM) provided $75 million for the purchase.

The deal consists of two condo units. One portion sold for $162.8 million, and the other for $37.1 million.

Making up 1568 Broadway is a 468-room DoubleTree Hotel and the Palace Theater, a 104-year-old venue owned by the Nederlander Organization and located at Broadway at West 47th Street.

It’s worth noting that, according to legend, the ghost of Judy Garland haunts the theater, and that her presence is felt near a doorway that was built especially for her near the orchestra (h/t Curbed NY).

Indianapolis-based Maefield Development, also a stakeholder in the 20 Times Square hotel, paid $540 million to purchase the leasehold interest in 1568 Broadway back in 2015.

The acquisition was the first step in a $2 billion redevelopment of the property, which is expected to include raising the historic Palace Theater 29 feet in a multi-million dollar restoration and 10,000 square feet of retail space ( h/t Real Estate Weekly).


Original Post: www.bizjournals.com