An office-to-residential conversion in Manhattan? That is so 2023. What about a conversion of office-hotel?
Kensico Properties suggested converting 509 Madison Avenue in Midtown from a 21 -storey office to a 30 -storey hotel with a retail space on the ground floor, Crain’s reported. The Nabil Chartouni company submitted a re -use with the Department of City Planning.
The conversion plans require 96 hotel rooms, as well as a lobby and facilities areas, all of which extend over 139,000 square feet. The retail space would take 3,300 square space and have a separate facade of the hotel.
A decade ago it was not even clear whether Kensico would hold the building. In 2017 it brought its leasehold on the market, despite the fact that the high occupancy rate remains strong. The lease has never sold.
Tenants at the building today include investment company Banyan Tree Capital Management, Private Equity company Yellowstone Capital Partners and Kensico itself, which would probably be moved by a conversion that did not leave an office space.
None of the relevant players commented on the exhaust valve about the application. If the conversion takes place, the hotel would compete with people like Omni Berkshire Place, Lotte New York Palace and Hotel Elysee nearby.
The New York City hotel market surpasses the rest of the sector nationally in a number of important statistics, including the average weekly occupancy rate – 82 percent in the first half of the year, according to Costar and sales per available room in the city per night, which was on average $ 238.93 per week.
The hotel owners of the city benefit from a few critical legislative changes in recent years.
An account of the 2021 city council obliged a special permit for new hotel developments, which is essentially freezing the construction pipeline of the sector.
Two years ago, the city started to make rental in the short term, where platforms were blocked to process payments to hosts who were not registered with the city or had no approval to rent their property for less than 30 days.
– Holden Walter-Warner
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