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NEW YORK CITY-A new hotel could soon rise in Midtown South on West 38th Street, centrally located between Grand Central Terminal, Times Square and Penn Station. The site at 45-47 W. 38th St. fetched a sale price of $12.5 million.

The site currently accommodates a six-story building that is 100% occupied by commercial tenants, providing the new buyer an income stream pre-development. A source close to the sale tells GlobeSt.com that they cannot disclose any information on the buyer; however, the seller is locally based Nelson Tuchman of the Tuchman family.

Locally based Eastern Consolidated associate Anna Ronquillo represented the seller while Azita Aghravi, senior director, procured the buyer. “The existing building at 18,000 sf is under built; the site allows for a development of close to 39,500 sf–ideal for a boutique hotel,” Ronquillo says.

Ronquillo tells GlobeSt.com that as built, the price per sf is $581 with 21,500 sf. “Developing a new 39,500-sf hotel, plus or minus, would result in the utilization of unused air rights and would create value for the property,” she says. “Hotel market in the area is underserved.”

According to Aghravi, the buyer owns other properties in the Garment Center and his original plan was to convert the property to a boutique hotel, but due to the tremendous demand from both local and foreign hospitality companies, the buyer is considering to joint venture or resell the property to an experienced hotel operator. For the time being, they are maintaining the building’s current use as an office property.

Abe Mordowitz Esq. and Bruce Lemberg Esq. of Mordowitz & Lemberg LLP represented the seller. Behnam Kahem Esq. acted on behalf of the buyer.

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