Here at Cubed Advisory, we have seen several stalled condo projects go rental, what we don't see quite as often is a stalled condo going hotel. After multifamily being driven by record rents, hotel is the next most active real estate asset class in the city, with several under construction or renovation
So it shouldn't be all that surprising to learn from the Full Story below that Turkish chain Marmara Hotels and Residences have picked up the stalled Jasper condo at 114 East 32nd, from Petra Capital Management for $55M. Originally planned as 80 condos, previous reports
had mentioned reworking the 122kSF building into 200 hotel units. The $450/SF purchase price is on the higher end of average Manhattan hotel land purchases, but Marmara should be able to achieve savings by the fact that the building is extant. Gut reno is cheaper than ground up- especially when the previous owner has already completed the gutting. Marmara is still going to have to keep a close eye on the bottom line as any construction over $250/SF is going to push them over the current average NYC hotel development figure of $488k/room. We are predicting that Marmara is much more likely to be saddled with a full development cost of $550-575k/room.
Labels: condo to hotel, hotels, Jasper, Marmara Hotels and Residences, Murray Hill, Petra Capital Management, redevelopment