Update: 5:34 p.m.
The Los Angeles-based Gehr Development has paid $99.5 million for the Fairfield Inn at Times Square, part of the Marriott hotel franchise, according to city records. The hotel, at 330 W. 40th Street, is Fairfield’s first outpost in Manhattan, and the largest hotel in the Fairfield brand.
Aside from a $142 million long-term ground-lease buried at the bottom of Lois Weiss’s column last week, this transaction may well be the biggest building trade of the year in New York City.
The deed for the 244-room hotel was transferred on Feb. 12 from an entity called Fashion Times Square LLC. The hotel officially opened just a couple of weeks later.
Gehr Development is a subsidiary of Gehr Enterprises, which works in sectors ranging from manufacturing to direct marketing and international trade. This is the firm’s first foray into hospitality.
“This is our first hotel acquisition,” said David Lifschitz, the executive vice president and CFO of Gehr Enterprises. “And we wanted it to be in Manhattan, because we strongly believe in the Manhattan market.”
“We’re looking forward to making additional [hotel] acquisitions [in Manhattan], provided the financing climate improves,” he added.
According to John Wolf, a spokesman for Marriott, the group that developed the Fairfield and then sold it to Gehr is also developing at least two other franchises in Manhattan, including a second Fairfield near Times Square, and one in Chelsea.