An Oklahoma City investment group has a contract to buy the Waldorf Astoria in Washington, D.C., a landmark that was redeveloped and once owned by former President Donald Trump, The Oklahoman has learned.
An email sent to investors by Andy Burnett indicates the sale will total $260 million, far below the $375 million paid by the current ownership to Trump in 2022.
When contacted by The Oklahoman, Burnett declined to comment on the pending transaction but verified that he authored the email sent to investors.
In the email, Burnett called the pending purchase “a complex transaction with a lot of moving parts,” adding efforts to acquire the hotel started three years ago. The email also suggests veteran broker and developer Mark Beffort is part of the investment team.
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Burnett and Beffort previously partnered in developing the West Village apartments and retail along Film Row and bought their first hotel, the Colcord, in April 2021. Since then, they have expanded their portfolio to eight hotels with locations including New York City; Chicago; Charlotte, North Carolina; Tulsa; and Oklahoma City.
One of their most recent purchases was of Oklahoma City’s historic Skirvin Hilton Hotel, which is currently undergoing a $15 million renovation.
What to know about the Waldorf Astoria in Washington, DC
Acquisition of the Waldorf Astoria would be the biggest addition yet to Burnett and Beffort’s holdings, which includes the 2021 purchase of the Martinique Hotel, a 531-room Beaux-Arts building built in 1897.
The Waldorf Astoria was built between 1892 and 1899 as the headquarters for the U.S. Postal Service. The building’s clock tower, the third-tallest building in Washington, D.C., includes a popular observation deck with views of the city.
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The U.S. General Services Administration awarded a 60-year lease to a consortium led by Donald Trump in 2012. He spent $100 million renovating the landmark into the Trump International Hotel, which opened two months before his 2016 presidential election.
USA Today reported Trump’s income during the first year of operation ― also his first year as president ― topped $40 million. USA Today also reported customers that first year included officials from Malaysia, Kuwait and Saudi Arabia.
The Trump Organization put the hotel up for sale in 2019 and sold it in 2022 for $375 million to CGI Merchant Group, a minority-owned real estate investment group based in Miami.
The hotel closed for three weeks in May 2022 and reopened as the Waldorf Astoria operated by Hilton Hotels.
The hotel might not be standing today if not for the efforts of the late Sen. Elmer Thomas, an Oklahoma Democrat who was chairman of the Senate subcommittee on district appropriations when a presidential special committee recommended tearing it down to make way for construction of additional offices for the Internal Revenue Service.
As reported on May 1, 1938, by The Washington Post, Thomas successfully blocked the demolition multiple times and insisted the building had many good years ahead.
“It would be ridiculous to tear down that fine old building,” Thomas said. “It is a famous landmark with its familiar clock tower.”
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Publish date : 2024-09-25 02:01:00
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