Successful Sale of 569 Lexington Avenue in Midtown East, Manhattan
Bob Knakal played a key role in the successful $169 million sale of the Doubletree Metropolitan Hotel at 569 Lexington Avenue. This 764-key hotel, spanning 349,000 square feet across 18 stories, is located in the heart of Midtown East—one of Manhattan’s most commercially active corridors. The transaction, which closed on December 15, 2021, represents one of the most significant hotel trades in the area during that year.
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Sale Details
The Doubletree Metropolitan Hotel was a standout hospitality asset due to its sheer scale, location, and redevelopment potential. The 18-story building on a 32,273 square foot lot drew strong investor interest. With 764 guest rooms and over 349,000 square feet of built space, the property sold for $169 million, or approximately $484 per square foot.
Bob Knakal’s strategic insight into both the hospitality and redevelopment markets helped frame the opportunity, generating serious attention from institutional and private investors alike.
- Sale Price: $169,000,000
- Asset Type: Hotel
- Stories: 18
- Units: 764 guest rooms
- Total Square Footage: 349,000 SF
- Price per SF: $484.24
- Lot Size: 32,273 SF
- Sale Date: December 15, 2021
- Neighborhood: Midtown East, Manhattan
- Property Address: 569 Lexington Avenue, New York, NY 10022
Property Details
569 Lexington Avenue, known as the Doubletree Metropolitan Hotel, is a mid-century modern building designed by the legendary architect Morris Lapidus. Located at the corner of Lexington Avenue and East 51st Street, the hotel’s position in Midtown East places it near Grand Central Terminal, the United Nations, and Park Avenue office towers.
The building’s scale, Art Deco-inspired design, and visibility along one of New York’s busiest avenues contribute to its long-standing appeal. It also presents future repositioning potential for hospitality, mixed-use, or residential redevelopment—further enhancing its investment profile.
Market Strategy and Buyer Positioning
Bob Knakal's role involved emphasizing both the near-term operating potential of the hotel and its long-term redevelopment possibilities. The marketing strategy positioned 569 Lexington Avenue not only as a performing hotel but also as a generational corner site suitable for mixed-use redevelopment. This dual appeal expanded the buyer pool and allowed for robust negotiations, resulting in a high-value transaction that met the seller’s strategic objectives.
Neighborhood Overview
Midtown East is one of Manhattan’s most dynamic and sought-after commercial districts:
- Home to Fortune 500 office towers, luxury hotels, and global consulates
- Immediate access to Grand Central Terminal and the 4/5/6/E/M subway lines
- Walking distance to Park Avenue, Fifth Avenue, and the United Nations
- High pedestrian traffic from both tourists and business travelers
- Continuous demand for large-scale hospitality and mixed-use sites
Conclusion
The $169 million sale of 569 Lexington Avenue reflects Bob Knakal’s ability to craft compelling investment narratives and identify the highest and best use of complex assets. His strategic guidance and market expertise helped facilitate a smooth, competitive transaction in one of Manhattan’s most high-profile submarkets. This sale exemplifies the value of informed advisory in navigating major hospitality and redevelopment opportunities in New York City.
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Frequently Asked Questions
What is the significance of 569 Lexington Avenue in the hotel market?
The Doubletree Metropolitan Hotel at 569 Lexington Avenue is one of the largest hospitality assets in Midtown East, with 764 rooms and a strong location on a major commercial corridor. Its size and position make it a landmark asset for both hospitality operations and future redevelopment.
What made this property attractive to Hawkins Way Capital?
In addition to its prime Midtown East location, the property offered scale, visibility, and the potential for future repositioning or redevelopment. The corner lot and architectural presence added to its long-term investment value.
Is there redevelopment potential for the building?
Yes. With 349,000 square feet of space on a 32,273 SF lot, the building offers flexible possibilities for future repositioning, including mixed-use, residential, or adaptive reuse, subject to zoning and planning guidelines.
