April 11 (Bloomberg) -- Hidrock Realty, a New York developer, bought a vacant lot near the World Trade Center site in lower Manhattan where it plans to build a 300-room hotel.
The property at 133 Greenwich St. was purchased in a joint venture with Robert Finvarb Cos. for $27.9 million, Hidrock said today in a statement. The partners plan to spend an additional $70 million to develop the 28-story hotel, which is slated to open in 2015, according to the statement.
The land deal is part of Hidrock’s goal to acquire $250 million in new assets by the middle of 2013. The company expects returns on this type of investment “north of 20 percent,” Hidrock President Abraham Hidary said in the statement.
Hidrock, which is adding lodging properties after having focused primarily on office buildings, plans to buy another hotel development site in Manhattan within six months, Hidary said in a telephone interview today.
“Development in Manhattan is very difficult,” he said. “There aren’t many companies that are set up for it. That diminishes competition, pushes prices lower and ultimately results in higher profits.”
The company also is converting a former office building at 960 Sixth Ave. in Manhattan’s Fashion District into a Courtyard, a Marriott International Inc. brand, for about $300,000 a room. The total cost of $72 million includes a bank branch on the bottom floor, Hidary said in October.
Hidrock is developing a SpringHill Suites, also a Marriott-owned name, at 25 West 37th St. in a partnership with Robert Finvarb Cos. at a cost of $53.1 million, or $320,000 a room.
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