Red-hot Boutique Hotel Now for Sale in Manhattan

The opportunity to acquire a 43-key, 12-story brand new boutique hotel property at 5 Allen Street on Manhattan’s revitalized Lower East Side, has come to the market through Eastern Consolidated. 

Eastern Consolidated director Marion Jones with senior director David Schechtman, Esq., Peter Hauspurg, chairman and CEO, and associate director Philip Huang are spearheading the marketing initiative for the sale of the hospitality property, currently under construction, with a projected completion date end of 2011.

“This offering represents an exceptional opportunity to own a newly constructed boutique hotel, flagged by a respected brand within the Wyndham network,” said Jones.

“But it also offers the flexibility to cancel Howard Johnson’s flag, for a nominal fee, switching the use to office condominiums.”

The 15,600-square-foot boutique hotel is configured with 22 double bedrooms, 21 single bedrooms, a ground floor lobby and a lower ground floor level with backyard garden. There are four rooms per floor from 2-11, and two of the guest rooms are located at lobby level.

“We believe this offering will generate tremendous investor interest, offer the buyer new construction with no development risk; a forward sale, in a recovering market, with very little time between completion and opening (only seven months); the option to change brands; the ability to change use,” said Schechtman.

Supply of newly constructed limited service hotels has been constrained, especially those built south of Houston Street where the larger projects dominate, such as Silverstein Properties’ Four Seasons at 99 Church Street (190 keys), Moinian’s W Hotel and Residences at 123 Washington Street (220 keys) and the Doubletree Hotel at 8 Stone Street (399 keys).