Sam Chang buying Extell-owned hotel dev site for $60M

McSam filed plans for 45-story tower on West 24th Street

New York /
Oct.October 05, 2017 01:00 PM

Extell Development is in contract to sell a Chelsea development site to Sam Chang for about $60 million, so that the hotel developer can construct a 45-story tower, sources told The Real Deal.

Chang filed plans last month for a 172,640-square-foot hotel on the vacant lot at 140-146 West 24th Street, where two commercial buildings stood just earlier this year.

For Gary Barnett’s firm, the sale marks a relatively quick flip with a profit of more than the triple its purchase price. Extell bought the building at 142-146 West 24th for $9 million in 2014, and then the building at 140 West 24th for $9.2 million in January. The same month Extell closed on the purchase of the second building, it filed demolition plans for both buildings. The property at 140 West 24th was perhaps best known for housing the private music venue and rehearsal space Red Door until shuttering in 2015.

Cushman & Wakefield had been marketing for sale both the 24th Street lot and the adjacent vacant site at 157 West 23rd Street. The block-through sites, located between Sixth and Seventh avenues, are zoned for hotel and office use.

The Kaufman organization owns the leasehold for 23rd Street, and Edison Properties owns the land.

Chang, who runs Great Neck-based McSam Hotel Group, is set to Close On The 24th Street purchase by Nov. 1, sources said. Gene Kaufman, a frequent collaborator of his, is serving as the architect of the hotel, the filing shows.

The 23rd Street parcel, however, is not part of the deal. Patrick Jones, special counsel to McSam, said there is no connection between the pending purchase and the 23rd Street site and that Chang has not filed plans for that property. He declined to comment further.

Cushman’s Bob Knakal and Brock Emmetsburger are representing Extell in the sale. Extell and the brokers declined to comment.

Extell disclosed in a second-quarter filing with the Tel Aviv Stock Exchange in late August that an entity called Extell Limited was in contract to sell the site for $30.5 million to then-unidentified buyer, though sources have said that entity’s interest accounts for roughly half of the total ownership.

The hotel would be located at least 10 blocks south of Chang’s primary domain in the city – the Garment District, where he largely develops mid-size, moderately priced hotels.

Rich Bockmann and Chava Gourarie contributed reporting.


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)
Extell lands $690M refinancing package for One Manhattan Square
Extell lands $690M refinancing package for One Manhattan Square
1591 Alps Road in Wayne, NJ and March Associates Construction president Louis March (Google Maps, Getty, March Associates)
From funeral home to strip mall
From funeral home to strip mall
The Chetrit Group's Joseph Chetrit and Park West Village on the Upper West Side (Getty Images, Google Maps)
Chetrit, Stellar land $365M refi for UWS luxury apartment complex
Chetrit, Stellar land $365M refi for UWS luxury apartment complex
Bruce Teitelbaum, 106 West 145th Street and Al Sharpton (Getty, Google Maps)
Teitelbaum slaps Sharpton with legal notice at Harlem HQ
Teitelbaum slaps Sharpton with legal notice at Harlem HQ
Jack Resnick & Sons president Jonathan Resnick and 250 Hudson Street (Getty Images, Google Maps)
PR giant Edelman renews massive space at Resnick’s 250 Hudson Street
PR giant Edelman renews massive space at Resnick’s 250 Hudson Street
Letitia James  with 18-36 Columbus Avenue (Getty, Loopnet)
Rockland County “fraudster” banned from real estate
Rockland County “fraudster” banned from real estate
(Illustration by Kevin Rebong for The Real Deal with Getty)
Cannabis goes legit: Real estate sees green in budding industry
Cannabis goes legit: Real estate sees green in budding industry
 SL Green’s Marc Holliday with 450 Park Avenue  (Taconic Partners, SL Green)
TRD Pro: Here are NYC’s biggest offices sales of Q2
TRD Pro: Here are NYC’s biggest offices sales of Q2
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...