Potential LIC Hotel Site Hits Market With $12.5M Price Tag
Terence Cullen June 4, 2015, 3:03 p.m.
Two connected lots in Long Island City have hit the sales market with the potential to build a hotel for $12.5 million, Commercial Observer has learned.
More than 86,000 square feet can be built at 11-01 38th Avenue and 37-37 11th Street, according to marketing materials provided by Newmark Grubb Knight Frank. That comes out to about 15 floors of commercial space, in addition to a 5,000-square-foot unattached parking garage.
“It’s a very vibrant market over there,” said Barry Berkowitz of NGKF, who’s marketing the property currently used as warehouse space. “Right now it’s underutilized the way it is.”
The combined 17,000-square-foot, as-of-right plots are about two blocks away from the commerce-heavy Vernon Boulevard, as well as four blocks away from the Queensbridge F Train station. With the current asking price, the property has significantly increased in value since it last sold in a family transaction for $900,000 in 2006 to LIC-based Kenjoy Realty, according to property records.
Hotel development has become a hot commodity in LIC, particularly in the portion of the area north of the Sunnyside Yards. This site, if repurposed as a hotel, would be the second developed within two blocks. Riverbrook Equities is building a 111-unit La Quinta Hotel at 9-02 38th Avenue between Ninth and 10th Streets, as CO previously reported.
“There’s a lot of funds available for hotel development,” Mr. Berkowitz said. “We’re expecting a lot of interest from international and local developers.”