NEW YORK CITY-HFF announced Friday it has been retained exclusively to arrange the sale of 140-144 W. 28th St., a 7,583-square-foot mid-block development site located on West 28th Street between 6th and 7th Avenues in Chelsea. The site includes a maximum 144,876 zoning square feet of development rights, including air rights transferred from adjacent zoning lots.
It is zoned for a variety of commercial, retail and industrial uses but is ideally located for hotel development given the site's central Manhattan location, according to the announcement. The Chelsea area is no stranger to hotels in recent years however, including two hip and trendy—and very successful—properties that opened in recent years: the NoMad Hotel, at 1170 Broadway between 27th and 28th Streets, and the Ace Hotel, at 20 W. 29th St., between Broadway and 5th Ave.
Still, the area is not yet oversaturated with hotel rooms, says Andrew Scandalios, senior managing director at HFF. “We believe that demand to stay in this area will continue to outpace the additional supply coming on line,” he says in a statement in GlobeSt.com. Scandalios will oversee the marketing of the property, along with Jeffrey Julien, managing director; Jose Cruz, senior managing director; and KC Patel, director. Financing guidance will be provided by HFF's Steven Klein, managing director.
Prospective buyers have ample reason to be excited about the hotel segment, HFF notes. The competitive set completed 2012 with an average occupancy of 90.6% and a $256 average daily rate, yielding a $232 RevPAR, a 7.9% increase over the prior year. These fundamentals are driven by New York City's strong lure to tourists: the city greeted 52 million visitors in 2012.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
