Korman Communities buys BlackRock stake in three AKA hotels

US: Korman Communities has acquired BlackRock’s majority stake in three extended-stay hotels located in midtown Manhattan for approximately $220 million. 

The properties include: AKA Central Park (42 West 58th Street), AKA Times Square (123 West 44th Street), and AKA Sutton Place (330 East 56th Street). The portfolio represents 322 keys, with the transaction valuing the properties at around $680,000 per key. 

Korman Communities partnered with BlackRock in 2006 to acquire and develop assets in New York City. According to The Real Deal, the three-asset portfolio was built for $255.5 million. 

Now that Korman Communities has acquired BlackRock’s majority stake, it returns the portfolio to the family-run business. 

The fifth-generation firm is led by co-CEO Larry Korman and Brad Korman, overseeing $4.7 billion of gross asset value under management. Its hospitality portfolio operates under the AKA Hotel Residences brand.

Last month, two hotels operated by AKA transitioned to Marriott and Hilton soft brands. It forms part of the company’s move to focus more on extended stay.

Highlights:

• Korman Communities has acquired BlackRock’s majority stake in three AKA extended-stay hotels in Midtown Manhattan for approximately $220 million.
• The portfolio includes AKA Central Park, AKA Times Square and AKA Sutton Place, comprising 322 extended-stay keys across three New York City properties.
• The transaction values the Manhattan extended-stay portfolio at approximately $680,000 per key, returning ownership control to Korman Communities.
• Korman Communities partnered with BlackRock in 2006 to acquire and develop the three New York assets, which were previously built for $255.5 million.
• The acquisition supports Korman Communities’ focus on extended stay, following recent AKA transitions into Marriott and Hilton soft-brand platforms.