FINDING VALUE OTHERS OVERLOOK

960 AVENUE OF THE AMERICAS

NEW YORK, NY 10001

CONVERSION - OFFICE TO HOTEL AND RETAIL

PURCHASED: 2009
SOLD: 2015, $132,000,000
PARTNERS: Private Investors
LENDER: Aareal Bank Group (ARL: Xetra)
PROJECT: 10,000 sf retail; 16-story, 167-room hotel; rooftop bar
HOTEL FLAG: Courtyard by Marriott (NYSE: MAR)


In October of 2009 Hidrock acquired the defaulted note secured by this 16-story office building. Hidrock completed the foreclosure process and took title of the building in July of 2010. After exploring alternate building uses, Hidrock recognized a hotel conversion as the property’s highest and best use. Soon after, Hidrock completed plans for the conversion, designated Courtyard by Marriott (NYSE: MAR) as the flag and secured a construction loan. In the 3rd quarter of 2011 Hidrock signed leases with BankUnited (NYSE: BKU) for 10,000 sf of ground floor retail space, and a lounge operator, Monarch, for the rooftop bar. The hotel opened in May 2013. Hidrock sold the property for $132 million in February 2015.