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BROOKLYN, NY-A 187- by 80-foot development site at 300 Schermerhorn St. was sold to Tyler Hospitality in an all-cash transaction valued at $11.9 million. The hotel developer and operator plans to construct a 14-story, 250-room Holiday Inn, a source close to the deal reveals to GlobeSt.com.

Nevins Realty sold the property for $143 per buildable sf to the same company who is currently building a 300-room hotel in Times Square and another hotel near JFK airport, simply because “the price was right,” the source notes. This will be the developer’s first presence in Brooklyn.

The property is located in Downtown Brooklyn on Schermerhorn between Nevins and Bond Streets, in close proximity to the transportation hub Atlantic Terminal and several colleges including Long Island University and Brooklyn Law School. The as-of-right buildable square footage is approximately 83,000 sf.

Tyler Hospitality is headed by Krishna Mehta and his son, Sanjeev Mehta, the source explains. The company was attracted to the site mainly because of the location. Although the source was unsure of the cost of construction, they did note that the hotel is expected to include a restaurant, lounge, parking, meeting rooms and other amenities such as a swimming pool and fitness center.

The Holiday Inn is being designed by Gene Kaufman of Gene Kaufman Architects. “As of now, there are very few existing hotels in Brooklyn,” notes Massey Knakal managing director Brian Leary, who exclusively represented the seller. “Currently, there are approximately 1,250 existing hotel rooms in Brooklyn.”

Leary adds that the Downtown Brooklyn Partnership has published statistics reflecting a total of approximately 3,000 rooms to come online in the next five years. “Existing hotel studies in the borough reflect low vacancy levels,” he explains. “This, coupled with the increase in residential, office and retail development in the borough, has given confidence to hotel developers that the market can absorb many more rooms.” Massey Knakal Realty Services was the sole broker in this transaction.

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