NEW YORK (AP) – The building that helped Donald Trump name himself in his first major deal in Manhattan is being sold to developers who are planning to demolish it.
Developer TF Cornerstone said Thursday that and a billionaire managing group Michael Dell's money has agreed to buy the Grand Hyatt New York next to the Grand Central Terminal and replace it with a mixed tower that includes office and retail and a smaller hotel.
Trump cooperates with Hyatt Corp. to buy what was then the Commodore Hotel in the late 1970s in its first splash on Manhattan real estate. He remodeled it into a sleek glass tower and used success as a stepping stone to his next big gamble a few years later, the Trump Tower on Fifth Avenue.
Trump sold his stake in the Grand Hyatt in 1
Neither the White House nor the Trump organization responded to comment requests.
When Trump made a deal to buy Commodore from the bankruptcy Penn Central Corp., the city itself was in the process of bankruptcy and most other developers were not interested.
As Trump tells it, he realized that there was something special about the Commodore after a walk in the hotel early one morning.
"The lobby was so dingy it looked like a welfare hotel," he wrote in "The Art of the Deal," but his eye got a hopeful sign. "There were thousands of well-equipped Connecticut and Westchester commuters floating on the streets of the Grand Central Terminal and underground stations below. The city was about to go bankrupt, but what I saw was a great location."
He was eager to Make their mark in Manhattan and take the trip with guaranteed loans from their father and generous tax rebates from the city. 19659002] Within a few years, he transformed the tired old Commodore into a shiny, reflective glass tower. His timing was also perfect. He opened the hotel just before the start of the 1980s and could soon rent rooms for as much as $ 1,100 per night.
In the latest deal, the new building will cover 2 million square feet and include a new Grand Hyatt with 500 rooms. The current hotel has 1,298 rooms.
The agreement still requires local and state approval. The country under the Grand Hyatt is owned by Empire State Development Corp., the state business development arm.
TF Cornerstone partner in the deal is MSD Partners, which invests assets owned by Dell and his family. Dell is the founder of Dell Technologies, and is estimated by Forbes to be worth $ 34 billion.