GFI Capital takes majority stake in James Hotel in $110M deal

first_img This content is for subscribers only.Subscribe Now GFI Capital CEO Allen Gross and the James Hotel at 22 East 29th Street (Google Maps)New York’s hotel market appears ripe for opportunity investors, as Allen Gross’ GFI Capital has upped its stake in the 337-key James Hotel in NoMad for what seems like a big discount.GFI has picked up an additional 61-percent stake in the luxury hotel from a partner in a $110.5 million deal, the firm said in a Sunday disclosure to the Tel Aviv Stock Exchange. The cost of the deal includes the assumption of existing debt on the property, plus $14.5 million in cash. After having previously sold off a portion of its 30 percent stake in the property, GFI now controls around 80 percent of the hotel at 22 East 29th Street.Although the identity of the seller is unknown, prior disclosures describe the former majority stakeholder as “a private real estate investment fund.”The seller proposed the deal, which GFI said “presented an opportunity to purchase its stake on favorable terms.” It also required GFI “to protect its invested capital in the hotel from a transfer of the property by the capital partner to the lender,” the latest disclosure said.GFI expects the favorable terms of the deal to have a positive impact on the company’s finances, though it is still examining the accounting implications with its advisers. The hotel was valued at $296.5 million in GFI’s latest annual report, while the buyout price implies a total property value of just $181 million.Additionally, GFI notes in the document that it is negotiating with “an American institutional investor” for a $20 million preferred equity investment in the hotel, which it expects to close within the next three months.A representative for GFI did not respond to a request for comment.GFI and its partners acquired the boutique hotel — formerly known as the Carlton — from the Wolfson Group for $162.1 million in 2015, and reopened the 12-story property as New York City’s second James Hotel two years later.Management company Denihan Hospitality Group had also held a minority stake in the hotel, according to disclosures at the time of the acquisition.Apollo Commercial Real Estate Finance funded the 2015 acquisition with $138 million in senior debt, according to property records, as well as about $20 million in subordinate debt according to Apollo’s SEC disclosures.Read moreGFI buys Carlton Hotel for $162MGFI to convert NoMad’s Carlton Hotel to James brandAllen Gross, owner of Ace and Beekman hotels, expecting $12M PPP loanlast_img read more

Tokyo Olympic board member would support another delay

first_img First Published: 16th June, 2020 13:06 IST COMMENT Associated Press Television News SUBSCRIBE TO US Written By An executive board member of the Tokyo Olympic organizing committee says another delay should be sought if the games can’t be held next year.The Tokyo Olympics were to be held this year but were postponed because of the coronavirus pandemic. The suggestion comes from Haruyuki Takahashi in an interview published Monday in the Japanese sports newspaper Nikkan Sports.“The main priority is to make a united effort to hold them (Olympics) in the summer of 2021,” Takahashi said.He said if that is not possible “we should start action once again to get another delay.”Estimates in Japan suggest the one-year delay will cost $2 billion to $6 billion, most of which will fall to Japanese taxpayers.International Olympic Committee President Thomas Bach and local organizing committee President Yoshiro Mori have both ruled out another delay and have said the games will be canceled if they can’t open on July 23, 2021.Takahashi has been intimately tied to the Tokyo Games.He’s reported to have received millions of dollars from the Tokyo bid committee for his work lobbying IOC members when Tokyo was chosen in 2013 in Buenos Aires, Argentina, ahead of Madrid and Istanbul.Takahashi is a former employee of the giant Japanese advertising agency Dentsu, Inc., which has been credited with helping Tokyo land the Olympics. Dentsu is the exclusive marketing agency for the Tokyo Olympics and has been pivotal in lining up a record $3.3 billion in local sponsorships.Image credits: AP center_img Last Updated: 16th June, 2020 13:06 IST Tokyo Olympic Board Member Would Support Another Delay An executive board member of the Tokyo Olympic organizing committee says another delay should be sought if the games can’t be held next year FOLLOW US LIVE TV WATCH US LIVElast_img read more