Sam Chang’s McSam Hotel Group through the entity Tsgl 8th Avenue LLC signed a 99-year ground lease with David Schwartz and family’s 777 8th LLC valued at $24.5 million for 777 8th Avenue in Midtown West. Chang plans to build a 200-key hotel at the site. The deal closed on October 16, 2019, and was recorded on October 28, 2019. The transaction consists of 1 parcel, including the tax class retail building with apartments above (K4). The property is 35,000 square feet. The parcel(s) have total development potential of 50,000 square feet.
The average sale price per square foot is $490. Marketing material said there was approximately 51,300 square feet of air rights from neighboring parcels that could be sold.
The estimated cap rate is 3.1%
The asking rent was $1.4 million per year, the Commercial Observer reporrted. The lease was negotiated for Schwartz by Peter Carillo of HKS Real Estate Advisors and Ben Tapper of Lee & Associates and Joseph Genovese of Lee Odell Real Estate was the broker for McSam Hotel. The last time an interest in the property transferred was December 19, 2018, when a Schwartz trust paid approximately $22.4 to three members of the family, according to property records. Chang recorded another 99-year ground lease this month with Solil Management at 223 West 46th Street, where he plans a 159-key hotel.
Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 renovation/alteration projects (A2) applied for with a total estimated value of $170,000.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.