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Hotel portion of NYC asset sells for $200M

Maefield Development, in a joint venture with Fortress Investment Group LLC, and L&L Holding Co. acquired the hotel section of 1568 Broadway in Manhattan, N.Y., for $200 million, The Real Deal reported.

The purchase was backed by a $75 million financing from JPMorgan Chase, which had earlier loaned $175 million to fund the hotel portion, the report noted, citing documents filed with the city's Department of Finance.

1568 Broadway stands 47 stories tall and comprises a Double Tree Hotel and the Nederlander Organization-owned historic Palace Theater.

Maefield purchased the leasehold stake in the hotel from Sunstone Hotel Investors Inc. for $540 million in 2015, while Fortress has been "involved with the property" for a while, the report noted, citing a source familiar with the partnership.

According to a source, L&L Holding is a new equity partner in the property with an undisclosed stake, the report said.

Maefield has teamed up with Nederlander to renovate the property to construct a 704-key boutique hotel. The New York City Landmarks Preservation Commission approved plans to lift the Palace Theater by 29 feet to create further space for retail and entertainment in 2016, the report added.