The Real Deal New York

Hell’s Kitchen site sees little rise in value in $43M Elad buy

West 43rd Street property last sold for $42M in 2008 
By Rich Bockmann | July 14, 2014 03:30PM

A Hell’s Kitchen development site fetched just $1 million more than its sales price from six years ago when the Elad Group picked up the 43rd Street property for $43 million earlier this month. 

Elad, owner of Marquis Properties Such As The Plaza Hotel, paid the $43 million in early July to Magna Hospitality Group for the vacant 20,010-square-foot lot at 505-513 West 43rd Street, records made public today show.

The Rhode Island-based Magna purchased the property from hotelier Sam Chang’s McSam Group for $42 million in 2008 with reported plans to build a 198-room budget hotel on the site. But brokers at HFF last year began shopping the property asking $50 million, the Commercial Observer reported.

Neither Elad nor Magna could be immediately reached for comment. Andrew Scandalios, the senior managing director at HFF who brokered the sale, declined to comment.

The site is located just north of the red-hot Hudson Yards area where developers are investing billions of dollars in a bevy of new developments. The property sits on top of an active Amtrak line and any new potential development reportedly requires two permits from the city’s Universal Land Use Review Procedure.