Pandemic pricing arrives to middle of i-sales market

Hotels, medical offices changed hands for between $10M and $30M last week

The hotel on Rockaway Beach sold for $25 million (Google Maps)
The hotel on Rockaway Beach sold for $25 million (Google Maps)

The effects of the pandemic on real estate were apparent last week in New York City’s mid-level investment-sales market as hotels and medical offices made up a majority of deals.

Hotel buildings have traded at a discount as the recovery of tourism and especially business travel have been slow.

Medical office space has weathered the pandemic better. In New York last week, two middle-market investment sales took place in Manhattan, one closed in Queens and one in the Bronx. The four properties that changed hands for between $10 million and $30 million fetched a total of about $68 million. The previous week’s mid-market total was $93 million.

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Here are details of commercial sales between $10 million and $30 million recorded in the second week of September.

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1. Shulem Herman bought a 94-key hotel at 43-17 Rockaway Beach Boulevard in Edgemere, Queens, near JFK Airport for $25 million. The seller was Abe Mendel’s Riverbrook Equities. The hotel building spans 48,600 square feet and more than half of its rooms reportedly shelter the homeless. Herman has acquired hotels that serve as homeless shelters before, including 1412 Pitkin Avenue in Crown Heights — sold by Riverbrook Equities in 2020 for $10 million — and 52-34 Van Dam Street, sold by Lam Group in 2018 for $36.5 million.

2. Liberty One Group affiliate 360 Properties LLC sold a 14-unit multifamily building at 360 East 193rd Street in Fordham, Bronx, for $18.7 million. The buyer of the 17,000-square-foot building was foreign limited liability company East 193rd Street Propco.

3. David Marom’s Horizon Group acquired the 60-unit Riverside Tower Hotel at 80 Riverside Drive on the Upper West Side for $12.1 million. The seller was the Cosmopolitan Broadcasting Corporation, which after buying the building in 1968 attracted some of the city’s earliest hip-hop DJs to its radio studio there.

4. Private equity firm 60 Guilders sold seven medical office condos at 345 East 37th Street near the NYU Langone Medical Center in Murray Hill for $12 million. The buyer was Miami-based Candor Capital. Adelaide Polsinelli, who brokered the sale for Compass, said the condos are fully leased and estimated that they span 20,000 square feet combined.