News for the Hospitality Executive |
NEW YORK, Oct. 16, 2012 -- Maefield
Development, Infinity Urban Century, The Witkoff Group and New Valley,
an
investment unit of Vector Group LTD (NYSE: VGR), announced today that they have
completed
the $430 million acquisition of their Times Square Gateway Center
development
site. The purchase clears the way for construction of a 340,000
square-foot,
36-story, multi-use development that will anchor the northern end of
Times
Square, with a new retail experience, a hotel tower, and the nation's
largest
single LED screen. The iconic Times Square Gateway Center
development, located
at 47th Street and Seventh Avenue, will dramatically
transform a
prime corner of Manhattan's Times Square. When fully complete in three
years,
the $800 million project will feature 130,000 square feet of
best-in-class
multi-story retail space facing the Square, a 24,000 square-foot
state-of-the-art LED sign wrapping around its facade at 100 feet of
height, a
dramatic rooftop and entertainment venue overlooking the Square, and a
world-class 500-room hotel tower. The podium building will deliver
retail space
with an unparalleled technology infrastructure, large floor plates, and
wide
open unobstructed areas to serve the hundreds of millions of consumers
who come
through America's number one tourist destination. "The Times Square Gateway Center will
greatly enhance
the North end of Times Square," says Ike S. Franco , Co-Managing
Partner
of Infinity Urban Century, LLC. "With the combined strength of Maefield
Development, New Valley, and The Witkoff Group, this project has the
potential
to become one of the most innovative New York City developments in
decades and
to further cement the image of Times Square as the most vibrant global
retail
and entertainment district." Times Square's renaissance has been
remarkable over the last
15 years. It has regained its dominance as the most highly visited
urban
corridor in the world, offering global retailers and brands
unparalleled foot
traffic and visibility. Today, retail, lodging and entertainment
together
generate over $5 billion in sales annually in the Square. In April of
this
year, the Bloomberg administration announced a $50 million overhaul of
Times
Square's streetscape to include new pedestrian areas, new sidewalks,
granite
benches, and lighting fixtures which are expected to give the venerated
urban
square a more modern feel and a fresh new look. Maefield Development and Infinity Urban
Century secured
exclusive control of the site in January 2012, after multi-year
negotiations
between Maefield and the various interest holders. The assemblage of
all the
purchase rights needed to create a free and clear developable site of
this
scale required securing purchase agreements for the fee simple interest
in the
land from the owners of the 701 Seventh Avenue property, irrevocable
lease
buyout agreements from the long term retail tenants that occupied the
ground
floor, and repurchase agreements from the existing facade signage
license
holders, all of which came together during the first half of this year. An existing eleven-story turn-of-the-century
office building
currently on the site will be partially demolished to make way for the
project's retail and signage complex, expected to be operational within
two
years. The joint venture will spend $170 million to develop the retail
complex
and another $200 million for the hotel tower. Starwood Capital is
providing $475
million in combined acquisition and construction financing for the
development,
$375 million of which was funded at closing. This transformational development is a
testament to New York
City's resilience and staying power in the midst of a slow national
economic
recovery. NYC's intellectual energy and economic vibrancy continues to
inspire
entrepreneurial risk takers to take large bets with the potential to
generate thousands
of new jobs for the City. Maefield Development is a privately
owned real estate
company, led by visionary CEO Mark Siffin . It has been headquartered
in Indiana
since 1991, and has had a long history developing iconic projects in
major US
cities. It focuses on acquiring and developing undervalued and
underutilized
properties, and it is known for many award-winning developments
throughout the
United States, including Los Angeles, San Francisco, Miami, and Kansas
City
among others. Over the last 20 years, the company has successfully
acquired,
entitled, and developed or sold in excess of five million square feet
of retail
and office space and 4,600 single-family and multi-family residences,
including
urban ground-up high-rise developments as well as master planned
residential
communities and shopping centers. Infinity Urban Century is the urban
property
investment unit of the Infinity Group, a New York-based
privately-held
investment holding company, and is led by partners Ike S. Franco ,
Steven J. Kassin
and Etienne Locoh . Infinity's owned portfolio comprises approximately
50
commercial properties and development projects in 13 states. Through
its
affiliates and portfolio companies Infinity oversees in excess of 35
million
square feet. The Company's principals have led over $2.5 billion of
real estate
related investments, representing over 80 acquisitions, developments,
and
corporate recapitalizations. The firm's roots managing and
repositioning
under-valued consumer brands gives it a unique approach to the
reinvention of
urban retail and mixed use assets. The Witkoff Group is a fully
integrated real estate
investment firm that owns a diverse portfolio of commercial real estate
assets
in the US. Founded by real estate investor Steve Witkoff , the firm
specializes
in acquiring undervalued properties in key central business district
locations.
The Witkoff Group joined forces with New Valley, LLC, the real
estate
investment subsidiary of Vector Group Ltd. The company owns a 50%
ownership
interest in Douglas Elliman Realty and is seeking to acquire additional
operating companies. It also holds investments in several significant
real
estate projects in California and New York. |
Contact:
Viet N'Guyen Edelman 212-704-4535 Errol Cockfield Edelman 212-729-2141 |
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