{"id":1004156510,"date":"2016-10-24T01:01:08","date_gmt":"2016-10-24T09:01:08","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004156510"},"modified":"2020-04-21T03:44:09","modified_gmt":"2020-04-21T11:44:09","slug":"denihan-pebblebrook-complete-manhattan-jv-restructuring","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/denihan-pebblebrook-complete-manhattan-jv-restructuring\/","title":{"rendered":"Denihan, Pebblebrook Complete Manhattan JV Restructuring"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/p>\n

\"The<\/a>

The Benjamin Hotel, New York<\/p><\/div>\n

New York<\/strong>\u2014The \u201cManhattan Collection\u201d of six upper upscale Midtown hotels, currently valued at $820 million, has been divvied up by the two joint venture partners that had bought the portfolio, for a rather higher price about five years ago, the two parties announced late last week.<\/p>\n

Pursuant to what reportedly was an amicable redemption agreement, Denihan Investments<\/a> is now sole owner of four of the hotels, totaling 917 rooms: The Benjamin, Fifty NYC, Gardens NYC and Shelburne NYC (the latter three operated under the Affinia Hotel Collection).<\/p>\n

The other joint venture\u00a0partner, Pebblebrook Hotel Trust<\/a> of Bethesda, Md., has assumed full ownership of the Dumont NYC and Manhattan NYC, totaling 870 rooms.<\/p>\n

\u201cWe are delighted to consolidate our ownership of the Manhattan Collection into these four hotels and are planning to invest significant capital into both the Gardens NYC (Upper East Side) and Shelburne NYC (Murray Hill),\u201d Denihan CFO Glenn Wasserman said in a prepared statement.<\/p>\n

The Benjamin and Fifty NYC reportedly underwent sizeable renovations in 2013 and 2014, respectively.<\/p>\n

Robert Douglas<\/a> acted as the exclusive financial advisor to Denihan in the restructuring.<\/p>\n

\u201cNotwithstanding the relatively strong performance of this portfolio in the face of the headwinds in New York City, Pebblebrook, like many REITs, has been interested in reducing its exposure in New York and gaining full ownership of its properties,\u201d Chris Ropko, senior director of Robert Douglas, stated in the company\u2019s announcement on the transaction.<\/p>\n

Hunton & Williams LLP<\/a> advised Pebblebrook in the deal, through a team led by Carl Schwartz, co-chair of Hunton & Williams’ global real estate practice, and Senior Attorney Anthony Bonan.<\/p>\n

“We take great pride in our long-term relationship with Pebblebrook and are happy to have played a part in helping the company achieve its goals through this closing,” said Schwartz in a statement.<\/p>\n

At the outset of the venture\u00a0in August 2011, the portfolio was valued at $910 million. That loss of value is attributable to \u201ca great deal of new supply\u201d and increasing operating costs, which have caused a drop in RevPAR, Robert Douglas Managing Director &\u00a0Principal Douglas Hercher told Commercial Property Executive<\/a><\/em>.<\/p>\n

Hercher added that the transaction \u201cwas done on a very cooperative basis.\u201d<\/p>\n

The transaction value of $820 million translates into roughly $460,000 per key.<\/p>\n

For its 49 percent interest in the joint venture, Pebblebrook received not only two hotels jointly valued at $342.5 million, but $59.3 million of proceeds from Denihan, representing a partial disposition of Pebblebrook\u2019s JV assets, as well as full repayment of its $50.0 million preferred investment in the venture.<\/p>\n

All debt previously secured by the Manhattan Collection has been refinanced, and Pebblebrook\u2019s remaining debt is now fully prepayable without penalty.<\/p>\n

\u201cWe are actively marketing these two hotels for sale and continue to be encouraged with the interest shown by the investment community, from both domestic and international investors, in high-quality Manhattan real estate,\u201d Thomas Fisher, Pebblebrook CIO, said in the REIT\u2019s prepared statement.<\/p>\n

Image\u00a0courtesy of TheBenjamin.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The joint venture partners have split up their six-property Manhattan hotel portfolio.<\/p>\n","protected":false},"author":882,"featured_media":1004156519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21751,21783,1600,21742,10],"tags":[],"class_list":["post-1004156510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-hotel","category-investment","category-new-york","category-latest","category-northeast"],"acf":[],"yoast_head":"\nDenihan, Pebblebrook Complete Manhattan JV Restructuring - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/denihan-pebblebrook-complete-manhattan-jv-restructuring\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Denihan, Pebblebrook Complete Manhattan JV Restructuring\" \/>\n<meta property=\"og:description\" content=\"The joint venture partners have split up their six-property Manhattan hotel portfolio.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/denihan-pebblebrook-complete-manhattan-jv-restructuring\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-10-24T09:01:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-21T11:44:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/The-Benjamin-Hotel-New-York.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/denihan-pebblebrook-complete-manhattan-jv-restructuring\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/denihan-pebblebrook-complete-manhattan-jv-restructuring\/\",\"name\":\"Denihan, Pebblebrook Complete Manhattan JV Restructuring - 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