NEW YORK—Hersha Hospitality Trust, based in Philadelphia, has entered into a purchase and sale agreement to acquire the 205-room Hilton Garden Inn in New York City located at 52nd Street for total consideration of $74 million.
The transaction is expected to close after the developer completes construction in the fourth quarter of 2013.
Hersha has provided $17 million to the seller as a non-refundable deposit earning a current cash coupon of 10 percent per year. Upon delivery, Hersha will assume or extinguish $42 million of first mortgage debt and make a second cash payment of $15 million. Upon acquisition, Hersha Hospitality Management will manage the property.
“Appealing to both corporate and leisure travelers, the HGI Midtown East is ideally situated within a 19.8 million square foot office market and is proximate to a number of notable landmarks including the United Nations, Grand Central Station and Rockefeller Center,” said Jay H. Shah, chief executive officer of Hersha.
The Company’s acquisition of the hotel is subject to a variety of conditions.