Buyer mulls hotel plan for W38th site.

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 West 38th Street netted a sales price of $12.5 million and currently accommodates a six-story building that is 100% occupied by commercial tenants, providing the new buyer an income stream pre-development.

Eastern Consolidated associate Anna Ronquillo represented the seller, Nelson Tuchman, while Azita Aghravi, senior director, procured the buyer.

"The existing building, at 18,000 s/f, is under built; the site allows for a development of close to 39,500 s/f--ideal for a boutique hotel," said Ronquillo.

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 re-sale of 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, while Behnam Kahem Esq. acted on behalf of the buyer.