By Corina Stef
Real estate investment firms The Kash Group and Shel Capital acquired the Morgans Hotel, located at 237 Madison Ave., in Manhattan’s Murray Hill neighborhood. The 71,000-square-foot iconic building traded for $41 million. The seller was real estate investment trust FelCor Lodging Trust. The Kash Group President Shlomo Bakhash and Shel Capital Co-founders Rony Kravel and Jonathan Bakhash made the announcement. The asset changed hands last year, upon SBE’s acquisition of Morgans Hotel Group.
From Hotel to Homes
As soon as the transaction closes in July, the joint venture plans to convert the 117-key hotel into a residential building. The boutique hotel opened in 1927 as Hotel Duane, designed by Andrew Thomas. Following complete renovations in 1984, the asset was renamed Morgans Hotel.
“When completed, the property will offer residents an urban oasis in a market that has limited competitive properties of this type and continuing strong residential demand. We will be introducing an exciting, innovative and groundbreaking new product to this market,” Bakhash said in a prepared statement.
The building’s central location puts it in the vicinity of restaurants, bars, retailers, art centers, The Morgan Library Museum, Bryant Park and Grand Central Station.
Image courtesy of Morgans Hotel Group