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 completesin 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 theis subject to a variety of conditions.