NEW YORK CITY–Hotelier Sam Chang of McSam Hotel Group has signed two long-term net leases for a total of three development sites that likely will be converted into hotels.
The developer has signed an agreement for two adjacent sites in Midtown, spanning over 35,000 square feet, as well as a 38,000-square-foot site in Midtown South.
On the former deal, Eastern Consolidated vice chairman Brian Ezratty and director of financial services Scott Ellard exclusively represented the owner, Manhattan Parking Group.
Ezratty also procured the lessee, a partnership between Chang and M&R Hotel Group that acquired the block-through site of 321 W. 43rd St. and322-326 W. 44th St. for future hotel development.
The 35,400-square-foot site is between Eighth and Ninth Avenues and features more than 25 feet of frontage along 43rd street and 59 feet of frontage along West 44th street. The site is zoned for about 35,400 square feet on more than 8,400 square feet of land, which is currently occupied by a commercial parking lot.
“The site is ideally situated within a few blocks of Times Square, Madison Square Garden, and Rockefeller Center, where there is tremendous demand for hotels,” says Ezratty. “New York City—and Midtown Manhattan in particular—continue to be epicenters for tourism year-round, which makes this market prime for the hotelier's expansion.”
The development site is close proximity to three major transportation hubs—Penn Station, Grand Central Station, and the Port Authority Bus Terminal—as well as the Theatre District, Restaurant Row, Macy's Herald Square, the Empire State Building and Bryant Park.
Meanwhile, McSam has signed on to develop 111-115 E. 24th St., between Park and Lexington avenues. The site is zoned for 38,000 square feet on 5,925 square feet of land. It features 60 feet of frontage on East 24th Street along with a 30-foot curb cut and it is occupied by a commercial parking lot.
“With flexible zoning in arguably one of the best locations in Manhattan, the property is prime for development into a boutique hotel,” says Ezratty, who along with Ellard and senior director Peter Carillo, exclusively represented the owner and procured the lessee. “The demand for hotels, generated by the landmark institutions in the area, will only continue to grow as the established Midtown South district continues to forge its own identity.”
The property is inside the northwest corner of the Flatiron District and positioned where NoMad, Gramercy Park, and Kips Bay meet. The property is in close proximity to Baruch College, the School of Visual Arts, HBO Studios and the New York headquarters for Credit Suisse First Boston.
In both cases, the landlords were represented by attorneys Sam Ross and Dov Brandstatter of Olshan while Chang was represented by Brian Wrynn of McSam Hotel Group and Stephen Epstein of Jaspan Schlesinger.
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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.
