Slate pays $94.5M for FiDi hotel Sam Chang bought in 2017 for $93.5M

Slate Property Group through the entity 52 William Street Propco LLC paid $94.5 million to Sam Chang’s McSam Hotel Group and Andrew Roufail through the entity SCCQ Downtown LLC for the hotel building (H3) at 52 William Street in Financial District, Manhattan.
The deal closed on December 12, 2024 and was recorded on December 23, 2024. The property has 119,467 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $791 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.)
Sam Chang bought the property on January 9, 2017, for $93.5 million when it was a Club Quarters-branded hotel. The signatory for McSam Hotel Group and Andrew Roufail was Andrew Roufail. The signatory for Slate Property Group was Stephen Krasman. The contract date was December 12, 2024. Andrew Roufail is the son of the late Fahim Roufail, who co-invested with Sam Chang.

Slate Property Group financed the purchase with a $69.5 million acquisition loan from Citibank.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Slate Property Group, led by David Schwartz and Martin Nussbaum, purchased six properties in five transactions for a total of $271.5 million and sold two properties in two transactions for a total of $15 million 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 $841.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Sam Chang, head officer and Steven Kipnis, site manager. The business entities are M&R Hospitality Management Corp. and SCCQ Downtown Llc.

The property

The hotel building in Financial District has 119,467 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 68 feet and is 91 feet deep with a total lot size of 6,497 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $34.3 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 one DOB violation, $13,810 in ECB penalties, $18,020 in OATH penalties, and one housing litigation 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 Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 13.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 1,617,206 square feet of the 2,018,428 square feet. The identified owner is Paramount Group.
There are no active new building construction projects on this tax block.

The majority, or 94 percent of the 2 million square feet of built space are office buildings, with hotel buildings next occupying 6 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 Slate Property Group owned at least 64 commercial properties with 3,056 residential units in New York City with 2,989,889 square feet and a city-determined market value of $756.4 million. (Market value is typically about 50% of actual value.) The portfolio has $1.6 billion in debt, with top three lenders as Mack Real Estate Group, JPMorgan Chase, and Apollo Global Management respectively. Within the portfolio, the bulk, or 71 percent of the 2,989,889 square feet of built space are elevator properties, with walkup properties next occupying 10 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Queens next at 21 percent of the space.

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