1021 Beach 21st Street, Queens, NY

$40,000,000

Price

53,868 sqft

Building Size

146

Keys

Gallery
Street
Map
Overview
Building Size
53,868 sqft
Keys
146
Description

Besen Partners Hotel Advisory Group, as exclusive agent for Ownership, is pleased to offer for sale 10-21 & 10-25 Beach 21st Street, Far Rockaway, New York 11691. This offering memorandum details a premier asset comprising of a 146-key hotel property, spanning a total of 53,868± square feet.

Built as a dual-branded hotel, combining both Wingate by Wyndham and former Best Western, the property is currently leased to the City of New York for its Sanctuary housing program. This not only guarantees a steady income stream but also underscores the city’s commitment to supporting the local community.

This brand-new property comes with a 25-year tax abatement that started in January 2020, considerably reducing the tax liabilities for investors and adding significant value to the offering.
The property’s strategic location provides an added advantage for potential investors. It is ideally situated in close proximity to the JFK Airport and several key transport hubs. The A Train Far Rockaway – Mott Ave Station is a mere 0.1 mile walk away, offering excellent connectivity throughout New York City. The Long Island Rail Road Far Rockaway Station is also within a short walking distance of 0.4 miles, making it highly accessible for residents and adding to its appeal.

The investment opportunity is being offered with pricing guidance at $40,000,000, which translates into a robust Cap Rate of 13.03%, indicating an excellent potential for income generation. This valuation equates to a price per key of $273,972.60 and a price per square foot of $743.

Far Rockaway, NY, is a flourishing and diverse neighborhood with a unique mix of commercial and residential entities. Its combination of locale, infrastructure, and the steady rental income from the City of New York makes this property an ideal and stable investment venture.

In summary, this property represents an extraordinary opportunity for acquisition. The secure rental income, excellent location, significant tax advantages, and high yield make it a standout investment. We invite you to further explore this remarkable opportunity in one of New York’s most dynamic areas.

Highlights
  • The property is a 146-key hotel property, covering a total of 53,868 square feet, located at 10-21 & 10-25 Beach 21st Street, Far Rockaway, New York 11691.
  • The property operates at full occupancy with 146 units at a nightly rate of $130, yielding a robust total annual revenue of approximately $6.93 million.
  • Operational expenses account for 19% of revenues or about $1.30 million. These expenses encompass utilities, water and sewer services, payroll taxes, and workers compensation.
  • The Net Operating Profit stands at $5.62 million, or 81% of total revenue.
  • Fixed expenses, including insurance and property taxes, account for 6% of the total revenue, costing around $410,023 annually.
  • Thanks to the 25-year tax abatement, property taxes are reduced, amounting to only $110,023 per year.
  • The property demonstrates a healthy EBITDA of $5.21 million, representing 75% of total revenue.
  • The offering price for the property is $40 million, reflecting its strong income profile and location benefits.
  • This pricing corresponds to a Cap Rate of 13.03%, price per key of $273,972.60, and price per square foot at $743
  • The property's strategic location close to key transportation hubs and JFK Airport adds significant value to the offering.
  • Given the strong financials, high occupancy rate, cost-effective operation, and 25-year tax abatement, this property presents a lucrative investment opportunity with high returns and stability.
Documents
Title
1021_Beach_21st_Street_HOTEL-OM_Final_080123.pdf
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Location
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