A subsidiary of Netherlands-based hospitality real estate group PPHE has entered into a joint venture agreement with Largo 542 West 29th Street Partners LLC, an affiliate of New York-based real estate development and investment firm Largo, to acquire properties on West 29th St., adjacent Manhattan's just-opened Hudson Yards neighborhood.
The aggregated consideration for the property reportedly was $42 million, plus associated acquisition costs. The deal was partially funded by Bank Hapoalim.
The joint venture will develop a mixed-use space that will include an Art'otel-branded property—the first outside of Europe. The property will have 98 guestrooms and 55 residential condominium units. PPHE and Largo each hold a 50-percent interest in the joint venture and, once the hotel is operational, PPHE will manage it.
This project is in line with PPHE's strategy to target real estate in areas with "significant upside potential" to drive growth and long-term value through both its property portfolio and operations. The company already has Art'otels in Amsterdam, Berlin, Cologne and Budapest, and is building two hotels in London.
According to Boris Ivesha, president/CEO of PPHE Hotel Group, the company was looking to further expand its presence in major gateway cities. "We relish the opportunity to enter this new market and expand our footprint into the United States," he said.