Madison 92nd Street Associates Closes Sale of Hotel to RLJ Lodging Acquisitions
NEW YORK, June 5, 2012 – Olshan announced today that its client, Madison 92nd Street Associates, LLC, has closed the sale of its 226 room Upper East Side hotel to RLJ Lodging Acquisitions, LLC, an affiliate of RLJ Lodging Trust, for $82,000,000.00. The sale closed under a confirmed chapter 11 plan in the seller’s bankruptcy case. Olshan represented the seller in connection with the sale and with confirmation of the chapter 11 plan. The seller’s chapter 11 plan was confirmed by order of the United States Bankruptcy Court for the Southern District of New York on May 25, 2012.
Adam H. Friedman, Business Restructuring and Bankruptcy partner, commented, “This has been a complex case that started with an impasse between the seller’s co-managing members which ultimately was resolved in the context of the chapter 11 process. Because the sale occurred under a confirmed chapter 11 plan, the purchaser acquired the hotel free and clear of prior liens and claims, including the prior hotel management agreement, and the seller obtained an exemption from paying transfer taxes, a significant benefit for the seller and its creditors.” Olshan Real Estate partner Eric L. Goldberg, added, “Olshan is delighted to have worked so closely alongside our long-time client to confirm its chapter 11 plan and to close the sale of the hotel. The seller congratulates RLJ and wishes it the best of luck with the purchase of the hotel.”
The Olshan team representing Madison 92nd Street Associates, LLC includes Business Restructuring and Bankruptcy partner Adam H. Friedman and of counsel Fredrick J. Levy, Real Estate partners Eric L. Goldberg and Thomas D. Kearns, and associate Keith J. Pollock. RLJ was represented by Arent Fox LLP partners Gerard Leval and Leah Eisenberg.
Tom McConnell and Jared Kelso from Cushman & Wakefield’s Global Hotel Group served as the real estate broker for the seller.
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