New York, NY – May 26, 2011 – An exceedingly rare opportunity to acquire a 43-key, 12-story brand new limited service hotel property at 5 Allen Street on Manhattan’s revitalized Lower East Side, has come to the market exclusively through Eastern Consolidated.
Eastern Consolidated Director Marion Jones with Senior Director David Schechtman, Esq., Peter Hauspurg, chairman and CEO, and Associate Director Philip Huang are spearheading the marketing initiative for the sale of the hospitality property, currently under construction, with a projected completion date in the fourth quarter of 2011.
“The opportunity to own a newly constructed hotel in an ascendant hospitality market without taking on development risk is virtually unheard of,” said Ms. Jones. She added that “the area is quite under-served in relation to high quality, limited-service hotels but it is also a proven market for independent boutiques.”
According to Mr. Schechtman, “Investors benefit from the flexibility to cancel the Howard Johnson flag, at a nominal fee, and reposition the property as an independent boutique in a location that robustly supports either approach.”
The 15,600-square-foot hotel is configured with 22 double rooms, 21 single bedrooms, a ground floor lobby and a lower ground floor level with backyard garden.
“Another competitive advantage is the possible long term exit strategy of conversion to office condominiums – a highly sought-after asset type in Chinatown regardless of market conditions,” said Ms. Jones.
Supply of newly constructed limited service hotels has been constrained, especially those built south of Houston Street where the larger projects dominate, such as Silverstein Properties’ Four Seasons at 99 Church Street (190 keys), Moinian’s W Hotel and Residences at 123 Washington Street (220 keys) and the Doubletree Hotel at 8 Stone Street (399 keys).
Given its location, 5 Allen Street could easily be branded to attract the growing market niche of affluent Chinese visitors to the City. And, historically, the New York City hospitality market is regarded as the most profitable hotel market in the US and one of the strongest markets in the world.
For further information about the pending sale, please contact Ms. Jones, or Messrs. Schechtman and Hauspurg at Eastern’s Midtown offices: 212 499-7700.
Founded in 1981, Eastern Consolidated is one of the country’s preeminent full-service real estate investment services firms, combining an unrivaled expertise in the greater New York marketplace with a worldwide roster of institutional and private investor clients. Over the years, it has been responsible for the acquisition, disposition and finance of all types of properties, including office and apartment buildings, lofts, factories, hotels, shopping centers, commercial and residential development sites, taxpayers, parking garages and lots, retail condominiums and air rights transfers.
Rubenstein Associates, Inc.
Melanie Keenan 212 843-8092