THE Hard Rock Hotel New York at 235 W. 46th St. is in contract to be sold to Walton Street Capital for approximately $200 million.
“This will be the end of the Hard Rock,” confirmed a city spy. “The plan was to convert it, but it will never be done and it will remain the Paramount [Hotel].”
In 2004 we broke the news that a group that included Ian Schrager and the then Morgans Hotel Group had sold the Paramount to Becker Ventures and Hard Rock Café International for about $130 million with all the fixtures.
However, it was always expected that a multimillion-dollar conversion would take place to make the edifice a suitable rockin’ memorabilia-ville. But that investment never occurred, and a venture with Sol Melia Hotels ended last fall even though reservations are still directed to its non-working link.
The chain, including the memorabilia, casinos, café and hotel brands were just sold to the Seminoles of Florida.
A Hard Rock spokesperson said, “They have made no secret that they are looking to sell the property and have a couple of potential suitors.”
Trevor Howell, vice president of the Hard Rock Hotels, claimed no knowledge of such a pending transaction but admitted considering options. “We have a lot of people interested in the Paramount,” said Howell. “[Ask] the majority owners of the hotel.”
A call to majority owner Becker Ventures was not returned by press time. Walton Street Capital declined to comment on “an ongoing transaction.”
Meanwhile, litigation by Phil Pilevsky is still pending over his claim of control of the legendary Billy Rose’s Diamond Horseshoe Club in the hotel basement. That venue remains empty, and the claims forced the Hard Rock Café to locate to nearby 1501 Broadway – coincidentally the former Paramount Theater.
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The former Children’s Place shop at 22 W. 34th St. is now being marketed through Jason Pruger, Ross Kaplan and Trever Gallina of Newmark Knight Frank. On behalf of the Solil ownership, the trio is asking $2.9 million a year for the total of 11,900 feet that includes 5,600 feet on the pedestrian-filled street. The store is opposite the site that was rented to Apple before quirky Steve Jobs turned tail and put those plans on hiatus.
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Really Great Things, which currently carries upscale women’s apparel on Columbus Avenue, is adding another location on the East Side. They’ve just leased the southwest corner of 62nd and Third Ave. in Trump Plaza. Kim Mogull of Mogull Realty brought in the tenant to the space where she was Donald J. Trump‘s exclusive broker. Asking rent for the ground and the lower level of 4,000 feet was $300 per foot. The space is the former Napoleon menswear store.
Next door, New York City Bagels leased 1,000 feet, also through Mogull.
Meanwhile, Katherine Loing, formerly with Scoop and Ann Taylor, just joined Mogull Realty to service their high-end retail tenants that include Big Drop Apparel.
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The Hunger Project has been located on the 14th floor at 15 E. 26th St. – which overlooks Madison Square Park – but the top portion is being converted to residential. At around 10,000 feet, the not-for-profit has also had an appetite for more space. Richard Gottlieb and Tim Bennett of Hunter Realty searched and found 5-9 Union Square West, where the Project leased two floors totaling 17,600 feet on part of the sixth and seventh floors.
Newmark Knight Frank’s Brian Steinwurtzel and Chairman Jeffrey Gural, the owner of the building, worked on the deal that had an asking rent in the mid-$40s per foot.
“We were originally looking for one floor, and they were very supportive of the Hunger Project’s mission and accommodated us by putting in a staircase,” said Gottlieb. “There is a lack of opportunities for office space, and you now have to dig deeper to find gold.”