NEW YORK CITY—Africa Israel USA has sold the Clock Tower Building at 5 Madison Avenue to hotel chain Marriott International Inc. for $165 million. The announcement was made by Tamir Kazaz, CEO of AFI USA.
Africa Israel acquired the 41-story, 267,000-sq.-ft. Clock Tower Building in 2007 for $200 million. Vacant since 2005, the Clock Tower was originally constructed and occupied by Metropolitan Life Insurance and is one of Manhattan’s earliest skyscrapers.
There was no broker involved in this transaction. AFI USA was represented by Doug Heitner and Ashley Lostritto of Kasowitz Benson Torres & Friedman LLP.
Marriott plans to turn the building into an EDITION hotel, its new luxury lifestyle hotel brand created in partnership with Ian Schrager.
While design work is already underway, the renovation and conversion of the iconic Clock Tower building will begin in late 2012.
"New York is one of the most important destinations in the world, and we are delighted to have secured the Clock Tower as a singular, iconic structure that will become a flagship for the EDITION brand and one of New York's most compelling places to stay," said Arne Sorenson, Marriott's president and chief operating officer. "While the rollout of the EDITION brand was slowed by the global economic downturn, we remain strongly committed to this brand and are dedicated to its continued development and success. We are thrilled to add the Clock Tower building to our Edition portfolio."
Other new EDITION hotels include projects under construction in Bangkok and Abu Dhabi, as well as contracts signed for hotels in Los Angeles and Gurgaon, India.