South Korea’s KTB Asset Management Co. along with a number of local institutional investors is reportedly investing around $94.1 million in the New York Marriott at the Brooklyn Bridge in the form of mortgage-backed securities.
The Korea Herald reports that four domestic life insurance companies have purchased the fund. The dividend rate is forecast to average 4 or 5 percent by year. The investments will be valid by 2021.
The hotel, which underwent a renovation in August, is located just across the East River from Manhattan near the Brooklyn Heights and DUMBO neighborhoods.
“The New York Marriott at Brooklyn Bridge has been seen lucrative to many investors, as it has sustained a stable cash flow even after the financial crisis in 2008,” a source from the firm told The Korea Herald.
Muss Development currently owns the hotel, which is operated by Marriott Hotel Services.
As Korea's Pulse notes, KTB has been upping its investment in alternative assets, such as real estate, since it named a new CEO in July.
As of October, the firm oversees about 985 billion won worth real estate funds at home and abroad.
“We will keep seeking business opportunities in the real estate market of overseas financial hubs like New York City, San Francisco, Tokyo and more,” the source continued.