
Montgomery Street Launches Ground Lease REIT; Acquires Planned Resi Conversion
Montgomery Street Partners (MSP) has formed The Ground Lease REIT (GLR), a dedicated vehicle focused on originating and acquiring long-term, unsubordinated ground leases. The newly formed REIT has acquired and simultaneously leased the Hudson Hotel in Manhattan’s Columbus Circle to an undisclosed ground tenant under a 99-year ground lease
The undisclosed tenant initially entered into contract to purchase the 93-year-old Hudson Hotel. Cain International acted as a strategic adviser on the sale on behalf of an affiliated ownership group. The tenant will redevelop the property into a luxury apartment building. Parkview Financial provided $207 million of leasehold construction financing.
“With apartment vacancies in New York near zero and rents at unprecedented levels, the developer recognized the highest and best use for the property was residential rental product that would help address the market’s supply-demand imbalance in the Columbus Circle submarket,” said Max Nipon, SVP at MSP.
- ◦Lease
- ◦Sale/Acquisition
- ◦Financing