NEW YORK — Soho Properties, MHP Real Estate Services and international hotelier Hampshire Hotels Management LLC have acquired 560 Seventh Avenue in Times Square for $63 million. The developers plan to construct a boutique hotel and retail property at the site valued at more than $300 million.
The building, which is located at the northwest corner of 40th Street, previously housed the Parsons School of Design. The site is still home to the Garment Center Congregation, an Orthodox synagogue.
According to the developers, the exsisting building on the site will most likely be razed. The redeveloped site will include a new Dream Hotel and 20,000 square feet of retail.
Dream Hotel properties are located in major cities in the United States and internationally. Hotel features include whimsical design details such as labyrinthine lobbies, aquarium columns, serene mood lighting and wistful decor combining traditional and modern elements. Hampshire is the creator of the high-end boutique hotel brand.
While constructing the new hotel and retail property, the developers will finance the temporary relocation of the Garment Center Congregation and incorporate a new sanctuary into the development plans.
“We are thrilled to complete this acquisition with the addition of our partner Hampshire Hotels, and begin the process of creating a brilliant, cutting-edge hotel that will bring a new level of excitement and luxury to the southern edge of the Times Square neighborhood,” says Sharif El-Gamal, chairman and CEO of Soho Properties. “We are especially pleased to accomplish our business goals while preserving an important historic religious institution.”
Bob Knakal, chairman of Massey Knakal Realty Services brokered the deal. Eran Nornberg, president of Atum Equity, will manage the hotel's development in connection with Hampshire Hotels.
“As longtime buyers of prime real estate in New York, we are excited to complete this transaction with our partners, Soho Properties and Hampshire Hotels,” says David Sturner, principal and chief operating officer of MHP. “The property will be completely reimagined and will be a terrific addition to perhaps the most visited area in New York.”
— Danielle Everson