Estate of Jacob Elberg Sells 105,000 Square Foot LIC Hotel Development Site to Westlead Capital for $36 million
Two hotel development sites just sold in Long Island City for $36 million.The assemblage of the two sites at 42-31 and 42-37 Crescent Street between 42nd road and 43rd Avenue will have over 105,000 SF of buildable combined for Hotel use. The partially approved hotel plans call for over 155,000 square feet. The plans are for two hotels, one on the “North Plot” with a lot size of 16,607 square feet, a plan for a total of 118,216 square feet and 231 rooms. The “South Plot” sites on a 4,414 square foot lot and has a proposed plan of 37,369 square feet foot 88 rooms. Last March, 6sqft reported that the plan is for an “11-Story, 180 Hotel Room, Crowne Plaza Hotel” by Nobutaka Ashihara Architects.
The sellers of the site are the Elberg family of Royal Real Estate Management. According to sources, apparently after the death of Jacob Elberg there was a dispute between son Reuben and his sister whether to complete the project or sell. The buyers are Westlead Capital Inc a Chinese based capital firm that deals with large immigration investment portfolios and EB-5 programs. The site was marketed with $47 million of EB-5 financing already in place for the proposed projects. Located centrally in Court Square the asset makes sense for a hotel development as it is surrounded with multiple subway stations and plenty of retail as well.
The deal was brokered by Marcus and Millichap’s Anthony Finno who briefly spoke with Queensbeans and confirmed the transaction. The transaction was further researched with the assistance of Costar.com
This deal marks another Hotel development sale in what has been perceived to be an already saturated Long Island City hotel market. With this deal Queens shows that for Hotel development, there are those that remain bullish. Queens is generating much more interest from institutional and individual international buyers in recent years and could go into 2017 positioned better than Brooklyn, especially with the anticipated closure of the L-Train. Buyers from the Asian market are becoming more relevant in Queens, with the RKO theater that was sold last month, Asian buyers are going all-in in Queens.