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

The property’s ownership, Milford Plaza Associates LLC, an affiliate of Philip Milstein’s Ogden CAP Properties, had suspended a planned renovation as it reassessed its options for the historic lodging property. The hotel closed this past December.

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

According to a release, the Highgate/Rockpoint partnership plans an extensive redevelopment of the property while continuing to operate it as a hotel. This will include upgrades to the historic building’s infrastructure and public space along with a complete renovation of the guest rooms. Highgate and Rockpoint plan to develop restaurant and retail components in the building’s ground-floor base.

Atlanta-based Hodges Ward Elliott, which specializes in the lodging sector, acted as exclusive broker on the transaction. The Post first reported this past July that the property was going on the market, and initial estimates put the hotel’s worth at about $150 million.