Queens Hotel Sells at Massive Loss After Conversion to Migrant Shelter
By Mark Hallum August 14, 2023 4:20 pm
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The Collective Paper Factory — a Long Island City, Queens hotel and co-living building that was recently converted into a shelter for migrants — has traded hands at a $23 million loss, according to property records.
Jeffrey Zwick & Associates acquired the former shoe factory turned four-star hotel at 37-06 36th Street from the Collective for $35.6 million, according to property records. The hotel comprises 125 rooms. It is unclear what the buyers have in store for the property.
The Collective — a venture with operations mainly in the United Kingdom — bought the property for $58 million in 2019 and turned it into hotel rooms that double as co-living spaces, with a bar, gym and meeting rooms.
But the transaction hit property records just days after the LIC Post broke that the hotel was to be converted into a Humanitarian Emergency Response and Relief Center — a migrant shelter — to house the influx of displaced people flooding into New York City.
JLL‘s KC Patel, Harry Keeshan and Bob Knakal handled the sale.
The Collective could not be reached for comment. The buyers did not immediately respond to a request for comment. It’s unclear who brokered the deal.
Built in 1916 as the Garside & Sons Shoe Factory by architect Frank Hill Smith, the building was a notable aspect of the historical fabric of Long Island City, which earmarked the building for landmark status when Dutch Kills underwent a rezoning in 2008.
Update: This story has been updated to show that JLL brokered the sale.
Mark Hallum can be reached at mhallum@commercialobserver.com.
