Liberty One pays $42M to McSam Hotel for hotel near JFK

Liberty One Group through the entity 154-71 Brookville Owners LLC paid $42 million to McSam Hotel Group through the entity Brisam Jfk LLC for the former Holiday Inn hotel building (H3) at 154-71 Brookville Boulevard in Rosedale, Queens, near the John F. Kennedy International Airport. The expected use is cash flowing.
The deal closed on February 6, 2025 and was recorded on February 19, 2025. The property has 59,963 square feet of built space and 7,443 square feet of additional air rights for a total buildable of 67,666 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $700 and the price per buildable square foot is $620 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 seller bought the property on April 6, 2005, for $4.5 million. The signatory for McSam Hotel Group was Sam Chang . The signatory for Liberty One Group was David Levitan . The contract date was December 24, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Liberty One Group purchased six properties in five transactions for a total of $57.4 million and has no record it sold any properties over the past 24 months.
The seller McSam Hotel Group had not purchased any other properties and sold 10 properties in nine transactions for a total of $935.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Sam Chang, head officer and Benjamin Ortiz, site manager. The business entities are M&R Hospitatlity Management Corp. and Brisam Jfk Llc. The 59,963-square-foot property generated revenue of $9.1 million or $153 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Rosedale has 59,963 square feet of built space and 7,443 square feet of additional air rights for a total buildable of 67,666 square feet according to a PincusCo analysis of city data. The parcel has frontage of 199 feet and is 350 feet deep with a total lot size of 67,666 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $16.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $4,745 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 26, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 5,252 square feet of the 116,531 square feet. The identified owner is ISJ Management.

The majority, or 51 percent of the 116,531 square feet of built space are hotel buildings, with industrial buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that McSam Hotel Group owned at least 24 commercial properties with 17 residential units in New York City with 1,092,980 square feet and a city-determined market value of $251.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 1,092,980 square feet of built space are hotel properties, with industrial properties next occupying 3 percent of the space. The bulk, or 84 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

The buyer

The PincusCo database currently indicates that Liberty One Group owned at least 14 commercial properties with 291 residential units in New York City with 379,883 square feet and a city-determined market value of $44.6 million. (Market value is typically about 50% of actual value.) The portfolio has $118.2 million in debt, with top three lenders as Signature Bank, Popular Bank, and Tristate Capital Bank respectively. Within the portfolio, the bulk, or 46 percent of the 379,883 square feet of built space are walkup properties, with industrial properties next occupying 28 percent of the space. The bulk, or 47 percent of the built space, is in Brooklyn, with Bronx next at 27 percent of the space.

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