A pair of buyers are in contract to pick up the development site of a planned hotel in Long Island City, potentially changing the course of the project.
Charney Companies and Tavros Capital are in contract to buy the development site at 24-09 Jackson Avenue in Queens from Toyoko Inn, PincusCo reported. The cost won’t be known until the sale closes, but the site was being offered at about $60 million.
Toyoko Inn assembled the site for more than $26 million from 2007 to 2014. The project was never able to get off the ground and Toyoko Inn hired a CBRE team led by Dan Kaplan to sell the property.
Toyoko Inn had a big vision for the site, planning a 50-story hotel with more than 1,000 rooms. The Real Deal previously reported, however, that a buyer was likely to shift the project towards apartments due to the maturing residential market in Long Island City, as well as new measures that add regulations to the construction of new hotels.
A City Council bill passed in December was potentially a factor in Toyoko Inn’s decision to sell. The measure required developers to obtain special permits to construct new hotels, essentially guaranteeing developers would have to commit to using union hotel staff on their sites.
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Charney in February filed a permit application for the construction of a 54-unit, 61,000-square-foot project at the site. An owner can develop a 267,000-square-foot residential building on the site as-of-right.
Tavros and Charney have experience teaming up on projects. The companies in January bought a full-block site at 318 Nevins Street along the Gowanus Canal from Property Markets Group for $102 million. They plan to build about 660 rental apartments on the property, which has more than 500,000 square feet of buildable space.
In 2019, the two companies paid $36.4 million to buy the site at 577 Union Street, where they plan to build 214 apartments. The two also worked together to co-develop the 177-unit Dime rental building in Williamsburg in 2020.
[PincusCo] — Holden Walter-Warner