Manhattan $29 million Hotel For Sale Gained Significant Interest

Feb. 10, 2011 - PRLog -- Castle Avenue Partners @ Rutenberg Realty has received significant interest for its $29 million hotel plus retail property, 120 Lafayette St, New York, NY 10013.  This is a 28 room hotel plus 10 retail stores totaling 11,000 square feet.  Interest spiked after being featured in The Real Deal and New York Times.   Along with the inquiries are offers that are being negotiated.

The hotel is different because of its prime location at the center of Manhattan's Chinatown.  Specifically, the hotel is located right in front of the 6 train subway exit which is amongst the busiest and most popular locations in Manhattan.  Times Square and Herald Square may have more traffic but Chinatown is second only to Times Square in terms of tourist traffic.  Chinatown is a major tourist attraction because of the cultural experiences, food and ample photo opportunities to bring home to share with loved ones.

About 40 percent of the property's revenue comes from retail rent coming from 10 stores selling handbags, glasses and souvenirs.  This differs 120 Lafayette from other hotel properties because for the latter, majority of revenue are from hotel operations.  In fact, the retail component is more valuable than the hotel component.   Over the past year, top companies like HSBC, TD Bank and Verizon have opened stores within one block of 120 Lafayette.  Verizon was the latest addition, opening about 2 months ago.  The retail rents have tremendous upside potential as demand from big companies increase.  Currently, rents on Canal Street are higher than most of Fifth Avenue and Madison Avenue.

Interest has come from all over the US, Asia and the Middle East.  Constant news about soaring demand for hotel property is definitely helping as well.  This includes growing demand while supply has remained constant over the years, projected growth in RevPAR, increasing number of tourists domestic and foreign, and inflation which would benefit hotel rates.  

For more information, visit http://www.castle-avenue.com/Manhattanl-Hotel-Canal-St.html

Summary:
Asking Price: USD 29,000,000
NOI:              USD 2,018,000
Cap rate:        7%
Hotel rooms:  28
Retail stores:   10

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Castle Avenue Partners focuses on luxury residential and commercial investment property in Manhattan, New York. Leveraging our strengths in financial analysis, property ownership and media presence, we help buyers identify the right deal and sellers attain the highest price. Our goal is to be our clients' long term partner in growing wealth through Manhattan property.

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