NEW JERSEY—CBRE Group Inc. has arranged a long-term lease between Host& Resorts L.P. and Vornado Realty Trust, which will allow Vornado to redevelop the retail and signage components of the New York Marriott Marquis Times Square hotel in New York City.
CBRE’s Eric Gelber, senior vice president; William Shanahan, vice chairman; Andrew Goldberg, executive vice president; and Darcy Stacom, vice chairman, represented Host Hotels & Resorts, the owner of the New York Marriott Marquis Times Square hotel, in the transaction.
Vornado has plans to spend up to $140 million to redevelop and expand existing retail space, including converting the below-grade parking garage into retail space and creating six-story, block front, dynamic LED signage spanning more than 300 ft.
Over the 20–year term of the, each party has options that, if exercised, would result in ownership of the leased space being conveyed to Vornado at a price based on the future cash flow of the leased property.
The property is located within walking distance to public transportation and the array of entertainment destinations in the Times Square vicinity.