due to residential conversions and future growth is limited by the lack
of available land and the high cost of development.
|NEW YORK - Nov. 14, 2005 -- Morgan
Stanley Real Estate's Prime Property Fund(R) (PRIME) announced today that
it has acquired the 646-room New York Marriott East Side in Midtown Manhattan
from SHC New York Eastside II, LLC for $287 million. SHC New York Eastside
II, LLC is a subsidiary of Strategic Hotel Capital, LLC, a private company
whose principal shareholders are affiliates of Goldman, Sachs & Co.
and investors advised by Prudential Real Estate Investors.
"The addition of this premier hotel property to the PRIME portfolio
increases the Fund's exposure to the lodging sector, which is experiencing
significant growth in occupancy, average daily rates (ADR) and revenue
per available room (RevPAR)," said Dave Hardman, Managing Director and
Head of U.S. Real Estate Investing at Morgan Stanley. "Additionally, it
allows PRIME to gain entry into the supply-constrained New York market
with Marriott International's leading full service brand."
The New York City lodging market is experiencing falling supply and
rising demand with one of the highest increases in RevPAR among the top
24 hotel markets in the nation. Supply has been contracting
New York Marriott East Side
(Formerly The Halloran House and
originally the Shelton Towers Hotel)
The New York Marriott East Side is located on Lexington Avenue at 49th
Street and is central to New York businesses and attractions. The 35-story
hotel has a unique modern style and decor, with an understated reference
to the hotel's magnificent art deco past. It features 629 rooms, 17 suites
and 19 meeting rooms, whose versatility can accommodate everything from
an intimate executive gathering, to a social gala for 300.
PRIME, a $4.5 billion diversified core real estate fund, is managed
by Morgan Stanley Real Estate. PRIME's assets include office, retail, multifamily,
industrial, self storage and hotel properties and are located in major
real estate markets throughout the United States. Morgan Stanley Real Estate
is comprised of three major global businesses: Investing, Banking, and
Lending. Since 1991, Morgan Stanley has acquired more than $68.7 billion
of real estate assets worldwide and currently manages $38.0 billion in
real estate assets on behalf of its clients. Using its own capital, Morgan
Stanley also originates upwards of $11 billion in commercial mortgages
annually. In addition, Morgan Stanley Real Estate provides a complete range
of investment banking services including merger, acquisition and restructuring
advisory and recapitalizations, as well as public and private debt and
equity financing. Morgan Stanley established its real estate organization
Morgan Stanley (NYSE: MWD) is a global financial services firm and
a market leader in securities, investment management, and credit services.
With more than 600 offices in 28 countries, Morgan Stanley connects people,
ideas and capital to help clients achieve their financial aspirations.