- Posted at 7:22, December 12, 2013
- By Russ Bleemer
The Real Deal's exclusive in the past hour on Host Hotels & Resorts' heist of the Marriott Marquis Hotel in Times Square is destined to be a costly lessons learned for the Empire State Development Corp.
The state agency sold the property to the hotel operator and owner for just $19.9 million--you're already late for the Twitter snark--under an agreement that allowed Host to repurchase the building for that price. The company originally leased the property from the ESDC, the state's lead economic development agency, and the city in 1982.
HERE is a copy of the deed, filed today.
The real estate magazine and blog says that New York City Comptroller John Liu called it “one of the worst deals since Manhattan was sold for $24.”
The article reports that Liu said an audit of the prominent heart-of-the-city property was "really worth close to $200 million," but adds that "recent deals suggest it could be worth much more."
You can read the history of the repurchase agreement--the Real Deal reports that the problem was a faulty 1998 amendment--and Host's defense in the article HERE.