NEW YORK—Alfa Development has closed on the purchase of the Hotel Grand Union, located at 34 East 32nd Street, for $28.6 million. The purchase marks the company’s first hospitality property in its portfolio.

Situated between Park and Madison Avenues, the Hotel Grand Union is located two blocks from the Empire State Building and is within walking distance to Macy’s Herald Square.

“We look forward to embracing the hotel’s existing potential, which boasts a priceless turn of the century architectural character,” said Michael Namer, founder and CEO of Alfa Development. “We will be bringing in Marshall Hotels & Resorts, one of the country’s top hotel operators, to help us maximize all the great things the Hotel Grand Union has to offer.”