Concord Hospitality pays $48.4M to Robert Chun for hotel in Chelsea

Concord Hospitality through the entity Concord Panorama Chelsea Hotel LLC paid $48.4 million to Robert Chun’s We-Care Trading Co., Ltd., for the Cambria Hotel New York – Chelsea (H3) at 123 West 28th Street in Chelsea, Manhattan.
The deal closed on March 13, 2023 and was recorded on March 23, 2023. The property has 55,411 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $872 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Concord Hospitality was Julie Richter.
The contract date is July 22, 2022.
Concord financed the purchase with a $32.5 million loan from Western Alliance Bank. An affiliate of Stonehill assigned an original principal loan of $29 million loan to Western Alliance in October 2022.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Robert Chun, head officer and Phillip Chun, officer. The business entities are Concord Hospitality Enterprises Company and We Care Trading Co, Ltd- Dba Cambria Hotel.

The property

The parcel has frontage of 50 feet and is 98 feet deep with a total lot size of 4,938 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $19.7 million. The most recent loan totaled 0.0 and was provided by PDOF DNP 2 Q2 21 New York, LLC on June 29, 2021.

Development

For the tax lot building, it received its initial certificate of occupancy on March 19, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Chelsea, The bulk, or 36 percent of the 52.6 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Chelsea has 2.1 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 39 commercial properties representing 282,724 square feet of the 1,571,487 square feet. The largest owner is David W. Sinclair, followed by Lisa A. Chapman and then Ira Lifshutz.
On the tax block, there were two new building construction projects totaling 142,049 square feet. The largest is a 350-unit, 112,341 square-foot hotel/dormitory/shelter (R-1) building submitted by Lightstone Group and filed by Joseph Teichman with plans filed January 10, 2014 and permitted March 28, 2016. The second largest is a 37-unit, 29,708 square-foot residential (R-2) building submitted by Hasso Gulrajaney with plans filed May 13, 2015 and it has not been permitted yet.

The majority, or 54 percent of the 1.6 million square feet of built space are office buildings, with hotel buildings next occupying 31 percent of the space.

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