Two sources have confirmed that the Holiday Inn is in contract to a party not related to PMG. One of the sources says that the property is in contract to be sold for about $65 million, but that the hotel will then be flipped to an unknown buyer for nearly $90 million.
The Holiday Inn sits on just 40,350 SF of land – significantly smaller than the 2.04-acre Empire World Towers site. It last sold in 1996 for $6.8 million. If rumors prove correct, it could be sold for about $1600 per square foot (and flipped for $2200) – much higher than the $900 per square foot that has been offered for the neighboring Empire World Tower site.
Update: A third source (this one completely anonymous and unverified to us) tells us that the in addition to the $90 million price, the contract buyer will also deed over 75,000 net sellable square feet in a new World Trade Center planned for the site to the flipper. On top off about $25 million in profit, the flipper could be getting about $60 million worth of property in the new building if valued at $800 per square foot.