McSam Hotel Group Grabs 292 Fifth Ave. Raw Gem
- Apr 19, 2017
Cushman & Wakefield recently announced the sale of 292 Fifth Ave. in the borough’s NoMad district and according to public records, Sam Chang’s McSam Hotel Group bought the site from BD Hotels for a reported $42.4 million. The sale was backed by a $26 million loan funded by Goldman Sachs. Cushman’s Robert Knakal, John Ciraulo, Jonathan Hageman, Craig Waggner and Patrick Yannotta brokered the sale on behalf of both parties.
Situated on a 0.13-acre lot in the vicinity of Koreatown, the flexible location is blocks away from Empire State Building, Madison Square Park, Herald Square and Penn Station, within easy reach of several transportation options. It also offers a total of 69,223 square feet of buildable space, due to recent Inclusionary Housing Program designations.
The site previously traded in 2013, when it comprised three properties that were later demolished. In accordance to building permit data, the plans included erecting a 57-000-square foot, 20-story construction. It was meant to encompass a 130-key hotel and approximately 12,000 square feet of residential space.
Transaction-wise, things seem to have slowed down a bit in Manhattan, but the Big Apple stays the most expensive city when it comes to new constructions.
“Recently we have seen a surge in development site activity citywide and this transaction demonstrates that positive trend. At $610 per buildable square foot for a hotel development site, this sale bodes well for the market moving forward,” Knakal, Cushman & Wakefield’s chair of New York investment sales, said in prepared remarks. Sam Chang did not disclose any future plans regarding the recently acquired domain, although he is on a building spree, with redevelopment plans for 9 & 14 E. 39th St. and 350 W. 39th St.
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