Raymond Chau pays $49.9M to Han’s Holdings Group for hotel in Chelsea

Raymond Chau, with a Brooklyn address, through the entity Hammertime W28 Street LLC paid $49.9 million to Han’s Holdings Group through the entity Han’s 28 Hospitality LLC for the hotel building (H2) at 121 West 28th Street in Chelsea, Manhattan. The expected use is cash flowing.
The deal closed on February 27, 2025 and was recorded on March 4, 2025. The property has 71,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $698 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 July 7, 2016, for $53.8 million. The signatory for Han’s Holdings Group was Peter Wu. The signatory for Raymond Chau was Raymond Chau. The contract date was October 25, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Raymond Chau had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Han’s Holdings Group had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Yun Feng Gao, individual owner and Paul Lee, site manager. The business entity is Hans 28 Hospitality Llc. The 71,500-square-foot property generated revenue of $16 million or $224 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Chelsea has 71,500 square feet of built space according to a PincusCo analysis of city data. 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 $22.6 million. The most recent loan totaled $24 million and was provided by Citibank on July 31, 2024.

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 two DOB violations and $590 in OATH penalties in the last year.

Development

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 35 percent of the 52.5 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 6th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Chelsea has 1.6 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 32 commercial properties representing 959,488 square feet of the 1,556,271 square feet. The largest owner is Samco Properties, followed by Lightstone Group and then Han’s Holdings Group.
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.

The seller

The PincusCo database currently indicates that Han’S Holdings Group owned at least one commercial property in New York City with 71,500 square feet and a city-determined market value of $22.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

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