Overview

Description

Besen Partners Hotel Advisory Group, as an agent for Ownership, is pleased to offer for sale 38-30 28th Street (the “Property”). Constructed in 2019-2020, this extended-stay hotel is comprised of 16 fully furnished suites/apartments, with 9 studio-style units, and 7 one-bedrooms, each with a kitchenette, hard wood floors and outdoor spaces, either as terraces or larger patios. It is an elevator building with sweeping views of Manhattan and the East River, conveniently located in the heart of Long Island City. The property has an indoor garage and on-site parking for two cars with curb cut.

The property is ideally designed for the expanding market of extended-stay opportunities in the hospitality industry. The demand is coming from a variety of groups; workers who are in town for long-term projects or training, as well as students for short-term learning opportunities, or healthcare workers relocating to meet demand, to name a few. As demand increases for facilities where guests planning a longer-than-usual hotel stay (anywhere from four days to four months), this property’s style, location and amenities will be an excellent fit.

There is an array of transportation access, including close proximity to the Brooklyn-Queens Expressway (I-78), LaGuardia Airport (only 3 miles away), public transit including Grand Central Station, and ferry access at the beautiful Long Island City waterfront. The property is one subway stop from Manhattan and a short cab ride to midtown Manhattan or Brooklyn.

The property was approved for a 25-year ICAP Tax Abatement.*

*ICAP Tax Abatements

There are numerous tax exemption and tax abatement programs available to property owners who construct new buildings or make alterations to existing buildings within the City of New York. For owners of nonresidential buildings, the Industrial Commercial Abatement Program (ICAP) is available. Provided there is an increase in the real estate taxes of at least 15%, ICAP provides a substantial tax savings where a building is altered or constructed in the City of New York. There are strict timing requirements and a preliminary application for ICAP benefits must be filed with the New York City Department of Finance prior to commencement of construction and prior to obtaining a construction permit from the New York City Department of Buildings. A final application for ICAP benefits must be filed within one year from the date a permit is issued.

Highlights

• ​The property has units with roof top decks and balconies, currently being listed at $440 / night.
• The property already has future bookings of $73,281 made from now till December 31st and is continuing to add more bookings.
• As per legislation passed in April 2021 no new hotels can be built in NYC, along with the fact that Airbnb is not legal makes this a high barrier-to-entry asset.
• ​The Hotel is currently achieving a $224 Average Daily Rate within the first 2 months of being open and is budgeted to achieve $285 Average Daily Rate by the end of year 2022.
• Stand-alone hotel property with no interference from Co-Op Boards or neighbors.
• ​Potential to reduce payroll cost significantly by automating the operations and outsourcing to a cleaning service that will only charge on a pay-per-use basis.
• ​The property offers investors a very attractive 4X Equity Multiple and a 59% IRR and a 14% Cap Rate.
• All higher floor units have views of the Manhattan Skyline.
• The property is located along the [7] Subway Train which runs from Hudson Yards to La Guardia Airport, with stops at Grand Central, Times Square, and Bryant Park.

Documents

---