Charles Wang Sells Long Island Marriott For 66 million

New York Islander Fan Central | 9/27/2014 06:12:00 PM | | |
Long Island Business News Reported 9/25/14 that the hotel was sold for 66.2 million.
Rechler sold his half-interest in the property to Wang at the end of 2009 after the pair’s Lighthouse mega-plan to redevelop the Coliseum’s 77-acre parking lot fizzled. RXR still gets $566,000 a year for the hotel’s ground lease, one of 18 ground leases the company bought from Nassau County for $37.5 million in 2011.
Wang’s firm, CBW Hotel, had been making interest-only loan payments on the Marriott’s mortgage until February 2013, when the payments stopped. The loan’s special servicer, C-III Asset Management, started the foreclosure process July 29, according to documents from Trepp, a Manhattan-based commercial mortgage analyst, which also confirmed the sale price to Starwood.
Earlier this month, the hotel’s new owner assumed the tax breaks that the Town of Hempstead Industrial Development Agency had given to Wang and Rechler that expire in 2016. In exchange, Starwood pledged to retain the hotel’s 260 full-time and 72 part-time employees for the next two years, according to IDA documents.
NYIFC Comments: Part of owning the hotel included the walk of champions abatement. The hotel remaining open during Ratner's possible renovations could be an issue for them. Who's to say how this effects how the Islanders/Sound Tigers do business with the hotel or if using it was part of the purchase price. An AHL home team would likely make heavy use of the facility.

Interesting how the foreclosure made big headlines, not the sale? Either way Charles Wang is out of the hotel business at a loss from the 90 million purchase price in 2005. The hockey business is part of this article and the hotel was operating at a profit the last three years under Wang according to the documentation.  The value of the property itself declined for the lack of a development.

Note-Scott Malkin's name is in some articles where Starwood is mentioned, but not with any stake or affiliation with the company. Bruce Ratner & Current Msg CEO Tad Smith also have past fringe associations with this company.



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