NEW YORK CITY-Highgate Holdings and private equity firmRockpoint Group said Tuesday they had closed on the acquisition ofthe 1,300-key Milford Plaza Hotel, a deal first reported in lateSeptember. A source familiar with the deal tells GlobeSt.com that aNew York Post report Tuesday pegging the value of theacquisition at $230 million, higher than earlier estimates, is “inthe ballpark.”

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The property’s ownership, Milford Plaza Associates LLC, anaffiliate of Philip Milstein’s Ogden CAP Properties, had suspendeda planned renovation as it reassessed its options for the historiclodging property. The hotel closed this past December.

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Occupying an entire blockfront at 700 Eighth Ave. in Manhattan’sTheatre District, the property was built in the 1920s as theLincoln Hotel. It was repositioned as the Milford Plaza in 1978,and has long been promoted to tourists under the nickname “Lullabuyof Broadway” due to its proximity to the district.

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According to a release, the Highgate/Rockpoint partnership plansan extensive redevelopment of the property while continuing tooperate it as a hotel. This will include upgrades to the historicbuilding’s infrastructure and public space along with a completerenovation of the guest rooms. Highgate and Rockpoint plan todevelop restaurant and retail components in the building’sground-floor base.

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Atlanta-based Hodges Ward Elliott, which specializes in thelodging sector, acted as exclusive broker on the transaction. ThePost first reported this past July that the property wasgoing on the market, and initial estimates put the hotel’s worth atabout $150 million.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.