Veteran developer Sam Chang has passed up the opportunity to build a hotel on the site of a five-story commercial building in Lower Manhattan. Chang sold the property to Rhode Island-based Magna Hospitality Group for $44.3 million on Friday, he confirmed to The Real Deal, and subsequently filed plans to demolish it yesterday.
An application was filed for a full demolition of 12 Water Street, also known as 6-10 Water Street. The building, located between Moore and Broad streets, consists of 10,000 square feet of office space, 8,000 square feet of retail and 3,200 square feet of storage space. An outlet of fast-food giant McDonald’s was the retail tenant until 2012.
In March 2013, Chang filed plans for a 29-story hotel with 231 rooms at the site, listing Gene Kaufman as the architect of record. He told The Real Deal at the time that he would not take an active role in the project. He purchased the property in 2008 for $56 million.
There was no broker in the deal, Chang said. Magna, a hotel investment and management firm, could not be immediately reached for comment.
Chang’s Great Neck, N.Y.-based McSam Hotel Group has handed off properties to Magna in the past. In 2005, Magna conducted its first major New York City deal, purchasing 13-15 West 45th Street from Chang for $36.5 million. The building is now a Holiday Inn Express, which Magna refinanced yesterday for $33 million, property records show. McSam also sold a then-unfinished Sheraton Hotel at 370 Canal Street to Magna for $83.5 million in 2008.
Chang, who has said his retirement is near, recently closed on purchases of a five-story office building at 11 West 37th Street from Elvee Rosenberg for $8.3 million and a parking lot at 326-330 West 37th Street for north of $30 million.