Stalled LIC hotel development site up for sale

Under new city law, Toyoko Inn’s property likely to be residential instead

New York /
Jan.January 19, 2022 02:00 PM

24-09 Jackson Avenue in Long Island City, Queens (Google Maps, Wikipedia)

A long-stalled hotel development site in Long Island City is up for sale.

Japan’s Toyoko Inn is aiming to get around $60 million for its property at 24-09 Jackson Avenue in the Court Square section of the Queens neighborhood, sources told The Real Deal.

The next buyer is likely to develop the property into apartments, as Long Island City’s residential market is now much more mature than it was more than a decade ago when Toyoko Inn first made plans to build a hotel.

The company, which operates a chain of more than 200 economy hotels in several countries, assembled the site for more than $26 million between 2007 and 2014. The project never got off the ground, though, and Toyoko Inn has hired a CBRE team led by Dan Kaplan to sell the property.

A representative from Toyoko Inn couldn’t be immediately reached. Kaplan declined to comment.

Several factors could have influenced Toyoko Inn’s decision to sell.

The City Council in December approved a measure that requires developers to obtain special permits to construct new hotels, a move that all but guarantees hotel developers will have to commit to using union hotel staff on their sites — and compete against nonunion hotels, which have lower labor costs. In areas of the city that had the special permit requirement prior to December, no new hotels have been built under the regulation.

The City Council’s zoning amendment did allow for projects that received construction approval from the Department of Buildings before the vote to be grandfathered, but Toyoko Inn hadn’t received permits for its plan.

Meanwhile, Long Island City — once considered a frontier for new residential developments — has become a desirable neighborhood to live in with strong rental and for-sale markets.

An owner can develop a 267,000-square-foot residential building on the Jackson Avenue site as-of-right.





    Related Articles

    arrow_forward_ios
    From left: Michael Dell, Alex Rodriguez and Donald Trump along with the Trump Hotel in Washington, D.C. (Getty Images, The Trump Organization, iStock)
    Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
    Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
    Capstone Equities' Joshua Zamir and Renwick Hotel at 118 East 40th Street (TripAdvisor)
    New owner Capstone revives Midtown’s Renwick Hotel
    New owner Capstone revives Midtown’s Renwick Hotel
    From left: Developer Bruce Teitelbaum and Durst Organization CEO Douglas Durst and 44-02 Vernon Boulevard (Getty Images, LoopNet, iStock)
    “A tremendous ordeal”: Lawyers in $97M Durst buyout slam case
    “A tremendous ordeal”: Lawyers in $97M Durst buyout slam case
    Dynamic Star's Brad Zackson; 23-10 Queens Plaza South (Queens) and 301 West Fordham Road (Bronx) (Google Maps, Dynamic Star)
    Brad Zackson’s Dynamic Star borrows $115M for Bronx, LIC projects
    Brad Zackson’s Dynamic Star borrows $115M for Bronx, LIC projects
    Jonathan Goldstein, CEO, Cain International and 356 West 58th Street (Cain International, Google Maps)
    Midtown’s Hudson Hotel slated for mixed-use redevelopment
    Midtown’s Hudson Hotel slated for mixed-use redevelopment
    Durst's Douglas Durst and 44-02 Vernon Boulevard (The Durst Organization, Google Maps)
    Investors in huge LIC project buy out Durst for $97M
    Investors in huge LIC project buy out Durst for $97M
    Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
    Brooklyn’s iconic Bossert Hotel facing foreclosure
    Brooklyn’s iconic Bossert Hotel facing foreclosure
    Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
    Related sues Meadow after foreclosure on Garment District hotel
    Related sues Meadow after foreclosure on Garment District hotel
    arrow_forward_ios

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

    Loading...