NEW YORK CITY-A partnership led by Silverstein Properties Inc. and Fisher Brothers has acquired the Beekman Tower hotel in Midtown with the intent of converting it into furnished luxury corporate apartment suites. The purchase price was not disclosed; a source familiar with the transaction confirms a New York Times report putting it at $82 million.
The partnership, which also includes Capstone Equities, Migdal Insurance Co. and Arkin Holdings, the latter making its first US acquisition, will invest about $25 million to renovate the 85-year-old Art Deco landmark at 3 Mitchell Pl. near First Avenue and 49th Street. Fisher Brothers and SPI are co-developers, and SPI will manage and operate the property along with leasing the apartments under the Silver Suites brand.
“The first time I visited the Beekman was on a date in 1955 with my fianceé Klara,” Larry Silverstein, president and CEO of SPI, says in a release. “The restaurant was well known as a celebrity hangout with incredible views of Midtown and the East River. We rode the elevator up to the 26th floor, where I took one look at the menu and realized I couldn’t afford to eat there! Now we are fortunate to have the opportunity to purchase this remarkable asset.”
The Silver Suites Residences at Beekman Tower, as the redeveloped property will be known, marks the latest iteration of the Silver Suites brand. Currently it includes 107 residences at Silver Towers at 606 W. 42nd St. and 60 recently launched pre-built and furnished offices at 7 World Trade Center. Fifty of the new apartments at Beekman Tower are slated to open this coming September, and the remaining 124 will come on line by the beginning of 2014, the release states.
Originally opened in 1928 as the Panhellenic Hotel, the Beekman Tower consists of the 26-story main tower and a 10-story annex. Its façade was designated a landmark by the Landmarks Preservation Commission in 1998.
The 153,000-square-foot Beekman Tower went on the market this past September, the New York Post reported. Eastdil Secured marketed it on behalf of the seller, which Real Estate Alert reported as Lone Star Funds.