Why Is Hearst Buying Across The Street?

California Group Grabs Club Quarters Hotel for $122 M.

A California real-estate investment group, Rockwood Capital, has purchased the Club Quarters Hotel near Rockefeller Center for $122 million.

Rockwood Capital bought the Club Quarters hotel at 25 West 51st Street from Masterworks Development. The deal was recorded in city records, and a spokeswoman from Rockwood Capital confirmed the buy. It’s the real-estate firm’s third Club Quarters buy in the city.

Rockwood Capital, which used to be an investment partner at 660 Madison before Broadway Partners gobbled it up, purchased two commercial-condo units at 25 West 51st Street, in a property that was divided into three retail-condo units, a source familiar with the building said. The two units purchased by the company included the hotel.

The hotel opened last year under the head of bullish investor Ralph Bahna, who controls Masterworks. In 2004, Mr. Bahna purchased the building from the bank Banca Nazionale del Lavoro with the intention of converting it into a hotel.

The relatively econo-friendly Club Quarters is a hotel designed for the businessman traveling on the fly or a European couple looking for a slight discount.

Rockwood now owns all the Club Quarters in the city, including one in the financial district and one on 45th Street. It also controls a 50 percent interest in a Doubletree on Lexington Avenue, a spokeswoman for the company said.

Chetrit Goes Uptown with $80 M. East Harlem Buy

He trades in downtown, midtown and now … uptown! In his latest move, the city’s most active developer, Joseph Chetrit, has purchased an East Harlem office building for $80 million, according to city records.

The building, at 1768 Third Avenue, is at the corner of 98th Street and has 247,000 square feet.

Since he sold the Toy Building at 200 Fifth Avenue for $500 million, Mr. Chetrit has been on a spending spree.

In fact, going back just two months, Mr. Chetrit has spent more than $500 million in a series of acquisitions.

Outside of this buy, he purchased the Standard Oil Building at 26 Broadway for $225 million in April. He spent $140 million in March to prepare development for a 37-story mixed-use giant on Sixth Avenue, between 30th and 31st streets; and he spent $64 million in March on a pair of N.Y.U. buildings near the World Trade Center redevelopment site.

His Harlem purchase mirrors the others: He’s clearly trying to buy in an area ahead of the curve. When he purchased 90-100 Trinity Place from N.Y.U., he did it with clear intentions to hold onto it for a future investment. The building is the home of two public schools with a lease that runs through 2022. By that point, Mr. Chetrit might have an undervalued building or development site in a totally refurbished area.

Likewise, Harlem is getting more and more popular in residential and retail.

The building is the home of the Florence Nightingale Health Center Adult Day Program.