Barry Sternlicht’s Starwood Capital Ready To Pay $250 Million For Old Navy Department Store Building In Herald Square

Sternlicht,  one of the East Coast’s most active developers of commercial real estate is expected to develop the property, situated on the highly desirable West 34th Street, into retail stores as well as take advantage of the property’s unused air rights to build a multi-storey hotel tower.

Opening of the W Hotel in NYC

Barry Sternlicht’s Starwood Capital Group is reported to be in an advanced stage of negotiations to acquire a 78, 000-square-foot building, situated in the heart of Herald Square  on 144-150 West 34th Street. Sternlicht is be ready to  pay $250 million for the property, which, according to market sources, has tremendous development potential.

The property which currently houses a branch of the Old Navy department store chain has been in the hands of KLM Construction, for close to 20 years.

According to those in the know  on the New York commercial real estate market, the property, which is situated on one of the prime spots in Manhattan directly opposite the famous Macy’s department store, has tremendous potential for redevelopment, which could see a 300, 000-square-foot retail and hotel tower be built on the site, if Sternlicht  takes advantage of the properties till now unused air rights, which is the empty space above the property.

Barry Sternlicht old navy

Starwood Capital and the Kefadilis family, owners of KLM Construction has reportedly reached an initial agreement, with the property schedule changed hands towards the end of this year.

In recent months Barry Sternlicht  has reportedly been considering an IPO for Starwood in order to raise funds and finance new property developments.

Starwood is currently involved in a number of luxury Manhattan residential projects with the most recent being the Baccarat Hotel & Residences New York project, which has now been completed and with  apartments up for sale.

Barry Sternlicht Old Navy

Barry Sternlicht graduated magna cum laude, with honors, from Brown University, going on to receive his MBA with distinction from Harvard Business School.

After graduation, Barry  began his professional career working with Chicago based JMB Realty, a real estate investment company.

In 1989, Sternlicht  established his first business venture, which led to the launch of  Starwood Capital Group two years later, with their principal activity being the acquisition of domestic properties, particularly apartment buildings with the company eventually diversifying into the purchase of  hotel sites, focusing on combining his passions of architecture and real estate finance. In the space of twenty years, the Starwood Capital Group  has completed  transactions with an asset value exceeding $40 billion.

The Starwood Capital Group  announced they will begin implementing  a major construction project in 2012,   which will see them complete a chain of luxury  hotels. Under the name of Baccarat Hotels and Resorts, the group’s  flagship hotel to be situated  in the heart of Manhattan,   New York City is due to open shortly,   with other hotels scheduled to open in Dubai in the United Arab Emirates, in Foshan, Shanghai and Tianjin in  China among a number of other locations  will be opening their doors during the next two years.

Barry Sternlicht

In 2010, Sternlicht was handed the  Executive of the Year and Investor of the Year by the Commercial Property Executive magazine, while in the same year the  Private Equity Real Estate magazine named Sternlicht as the Global Industry Figure of the Year as well as the North American Industry Figure of the Year in 2010 for the second  consecutive year in that  category.

Barry Sternlicht, well known for his interior design skills, has recently been  inducted into the Interior Design Magazine’s Hall of Fame.

Read more about: , , , , , , , , , , ,

About the Author

Wordpress site Developed by Fixing WordPress Problems