Dealmaker: Marcus & Millichap Sell, Finance Manhattan Hotel

Marcus & Millichap, Calabasas, Calif., sold and arranged financing for Martinique New York on Broadway, a 531-room hotel on the corner of 32nd Street and Broadway in Midtown Manhattan.

The asset sold for $55.5 million.

Eric Anton from the firm’s Manhattan office noted the pandemic initially wreaked havoc on New York’s hospitality industry, “causing countless established hotels and retail properties to close shop, including Martinique New York, which filed for bankruptcy in 2020.”

Last December, hotel owners Herald Square Assocs. hired Anton and Marcus & Millichap Investment Sales Specialist Nelson Lee to sell the property. They found buyer Burnett Equities, Oklahoma City, Okla.

Anton and Lee introduced Burnett Equities to local retail brokers who secured leases for all six of the asset’s retail spots prior to closing the property’s sale.

Anton used Mission Capital Debt & Equity, part of Marcus & Millichap Capital Corp., during the marketing process. With assistance from MMCC’s Matthew Polci, Steven Buchwald, Jordan Ray and Lexington Henn, Burnett Equities secured a $71 million mortgage and a more financeable ground lease.

Lee said Burnett Equities had sought opportunities to break into the New York market in the past, but had not found the right opportunity. “Our buyer saw the massive growth potential and future resurgence of the hospitality industry through this Martinique investment,” he said.