Successful Sale of 569 Lexington Avenue in Midtown East, Manhattan
Bob Knakal facilitated the sale of 569 Lexington Avenue, a landmark hotel property formerly known as the DoubleTree Metropolitan, for $169,000,000. Located in Midtown East, the 18-story building was acquired by Hawkins Way Capital with plans to convert it into student housing. The sale marked a transformative moment for the asset, shifting its use from hospitality to educational housing, and capturing new demand in a post-pandemic market.
Conversion Properties - For the complete list click here Conversion Properties
Sale Details
The sale of this 764-unit property closed on December 15, 2021. Originally built as a hotel, the DoubleTree Metropolitan spanned 349,000 square feet and sat on a 32,273-square-foot lot. Bob Knakal’s deep understanding of zoning, asset repositioning, and the Midtown East market helped ensure that the conversion potential was clearly highlighted throughout the transaction process. His team’s strategy attracted a buyer ready to reposition the asset for long-term value.
- Sale Price: $169,000,000
- Asset Type: Hotel (Converted to Student Housing)
- Total Square Footage: 349,000 SF
- Price per SF: $484.24
- Units: 764
- Stories: 18
- 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
Formerly operating as the DoubleTree Metropolitan Hotel, the building at 569 Lexington Avenue stood as a well-known Midtown hospitality fixture for decades. The 18-story structure featured 764 rooms and notable architectural design. Its central location and substantial scale made it an ideal candidate for repositioning. The buyer recognized an opportunity to transform the space into student housing, leveraging the building’s size and proximity to educational institutions throughout Manhattan.
Market Strategy and Conversion Opportunity
Recognizing shifts in hospitality demand during the pandemic, Bob Knakal focused on targeting buyers interested in adaptive reuse. His team emphasized the property’s zoning flexibility, large unit count, and proximity to universities and transportation hubs. The strategy successfully aligned the asset with Hawkins Way Capital’s goals, which included the adaptive reuse of large-scale urban properties for institutional student housing.
By repositioning the building away from traditional hotel use, the sale captured value in a moment when many hospitality properties faced operational and financial pressure. The team’s knowledge of regulatory conditions and development dynamics in Midtown East played a pivotal role in shaping the outcome.
Neighborhood Overview
Midtown East is one of Manhattan’s most strategic and connected districts:
- Close proximity to Grand Central Terminal and multiple subway lines
- Home to office towers, luxury hotels, and residential developments
- High concentration of educational institutions nearby, including
NYU, LIM College, and Baruch College - Walking distance to Fifth Avenue retail and Park Avenue business corridors
- Well-suited for high-density residential or student housing conversions
Conclusion
The $169 million sale of 569 Lexington Avenue highlights Bob Knakal’s ability to identify adaptive reuse potential and deliver market-aligned outcomes. By understanding emerging demands in student housing and acting at the right time in a shifting hospitality market, Bob and his team secured a strong result. The conversion of the former DoubleTree Metropolitan into a student residence marks a forward-looking repositioning of one of Midtown East’s most visible assets.
Learn More About New York Real Estate
Explore our exclusive online magazine to discover remarkable New York real estate deals and Success Stories from the city and surrounding areas.
Frequently Asked Questions
What is the current use of 569 Lexington Avenue?
Following its sale, 569 Lexington Avenue is being converted from a hotel into student housing, reflecting a shift in market demand and a strategic adaptive reuse of the property.
How large is the building and how many units does it contain?
The building spans 349,000 square feet over 18 stories and contains 764 units. It was previously configured as a hotel but is now undergoing conversion for residential student use.
Why was this property attractive to the buyer?
Its central Midtown East location, proximity to universities, and substantial scale made it an ideal candidate for student housing. The flexible zoning and long-term redevelopment potential also contributed to the buyer's interest.
