NEW YORK CITY — Africa Israel USA (AFI USA) has closed on the $165 million sale of the 267,000-square-foot Clock Tower Building, a former office building located at 5 Madison Ave. in New York City. Marriott International Inc. purchased the building, and will convert the 41-story property into New York’s first Marriott EDITION brand hotel.
“We are delighted to have reached an agreement with Marriott International to secure the future of this remarkable building and support the burgeoning vitality of the Madison Square Park neighborhood,” said Tamir Kazaz, CEO of AFI USA, in a prepared statement. “The EDITION hotel brand will be a perfect fit for this great neighborhood.”
The EDITION hotel brand is a new luxury, lifestyle brand created in a partnership between Marriott International and Ian Schrager.
AFI USA purchased the building for $200 million in 2007. Metropolitan Life Insurance originally built and occupied the building, but it has been empty since 2005. The Clock Tower Building is one of Manhattan’s earliest skyscrapers.
“We are delighted to have achieved such a strong price for this asset as a hotel property,” said Laurie Golub, general counsel and managing director of business affairs of AFI USA. “It speaks to the unique nature of the building and the exciting location, which is underserved by the hospitality industry.”
The sale was previously announced on Oct. 17, 2011, but the buyer was undisclosed at that time.
No brokers were involved in the transaction. AFI USA was represented by Doug Heitner and Ashley Lostritto of Kasowitz Benson Torres & Friedman.
— Savannah Duncan