Tuesday April 8th, 2014 - 9:36AM
NEW YORK—Developer Soho Properties and MHP Real Estate Services, with Hampshire Hotels Management, LLC, acquired 560 Seventh Ave. here as a part of a development project valued in excess of $300 million, to make way for the creation of a new Dream hotel and retail property in the Times Square area.
The property, which once housed the Parsons School of Design along with the still-active Garment Center Congregation, is located on the northwest corner of 40th St. at the gateway to Times Square.
Soho Properties, MHP and Hampshire Hotels will build a Dream Hotel and 20,000-sq.ft. luxury shopping experience at the site. Hampshire has an international portfolio of high-end boutique hotels, including the Dream Hotel brand.
Sharif El-Gamal, the chairman/CEO of Soho Properties, stated, "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...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 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," stated Eric Danziger, president/CEO of Hampshire Hotels Management.
Bob Knakal, chairman of Massey Knakal Realty Services, who brokered the deal, stated, "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."