Rumored boffo offer for The Mark in NYC

NEW YORK CITY – Alexico Group has received a $1 billion offer from an unnamed source to sell the luxury Mark Hotel on New York City’s Upper East Side, according to a Bloomberg report. With approximately 153 rooms, a $1 billion offer would equate to a record $6.54 million per key offer.

Last year, Alexico refinanced the hotel with a $335 million loan with $300 million in CMBS debt provided by Goldman Sachs. Alexico previously refinanced the Mark in 2022 through the CMBS market after a 2017 $265 million refinancing. The 2022 deal helped owner Izak Senbahar avoid foreclosure after Ohana Real Estate Investors tried to foreclose early in the pandemic.

Daniel Lesser, co-founder, president and CEO of LW Hospitality Advisors in New York City told Hotel Investment Today that in mid-2022, rumors circulated about the Aman in New York potentially trading for $7 million per key, but that never happened. “The Mark news is all with anonymous sources. So, I have no idea whether or not this could happen. Anything is possible and there is a lot of dumb money and big egos for an irreplaceable trophy asset.

“But when it refinanced last year for $335 million, assuming 50% loan-to-value, we are talking $770 million value. I’m not sure how you get to $1 billion.”

One of the more recent big deals in Manhattan came last year when Gencom acquired the Thompson Central Park Hotel from GFI Capital Resources Group and Elliott Management for $289 million.