Hawkins Way Capital, in a joint venture with Värde Partners, has acquired 525 Lexington Avenue in Midtown, Manhattan, comprising a 655-room, 406,261 square foot tower across 35 stories. A designated landmark building, the 1924-built property previously operated as a Marriott International branded hotel focused on corporate and business travel before closing at the onset of the Covid-19 Pandemic.
"525 Lexington represents a compelling opportunity to increase our footprint in the heart of Manhattan at a favorable basis. We believe the property will benefit from an injection of fresh equity and perspective to help weather economic and financial market headwinds and remain bullish on long-term growth and a sustained recovery of the New York market in general," said Ross Walker, Hawkins Way Capital's Co-Founder and Managing Partner. "We look forward to continuing to structure viable exit opportunities for existing landlords and grow our presence on the East Coast."
The acquisition marks the 9th purchase in the past five quarters for Hawkins Way Capital, combining to over 3,500 new units and over $1.3 billion in investments and continuing Hawkins Way Capital's push into urban student housing and hospitality properties. The Lexington Avenue property will be integrated into a nationwide network of over 5,700 units and 9,500 beds managed by Hawkins Way Capital's affiliated property management company.