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Developer plans for Empire strike.

A 50-foot wide, 4,940s/f, vacant land parcel located on Fifth Avenue and East 35th Street--literally diagonally across from the Empire State Building--has been acquired by a developer, who plans to erect a 100,000 s/f residential building on the site.

Eastern Consolidated's Alan P. Miller arranged the $20 million sale between the seller, McSam Hotel, LLC led by Sam Chang, to the buyer, Senior Living Options, Inc., Lee Odell Real Estate collaborated with Mr. Miller.

"This is an extremely valuable parcel," said Mr. Miller, "particularly because of its excellent Fifth Avenue location one block north of 34th Street, and because it's zoned for multiple uses.

In truth, the land never really came to market, because the seller realized it would be more fiscally prudent, given today's heavy demand for apartment buildings, to sell to a residential developer, rather than to develop a hotel on the site."

Queens based McSam Hotel LLC, one of the City's leading hotel developers, which specializes in building smaller hotels on small Manhattan sites, has developed ten hotels with 2000 rooms, in the last five years.

McSam Hotel LLC initially purchased the parcel in May 2000.

At that time, a five-story commercial building owned and tenanted by the Building Service Employees International Union, occupied the site.

McSam razed the existing building in preparation to construct a 27-story hotel, but then 9/11 occurred, the real estate industry was in a state of flux, many adopted a 'wait and see' attitude, and McSam decided to take a breather before it launched into its hospitality project.

Several months ago, McSam purchased 373 Fifth Avenue, which shares the same zoning lot with 1-3 E. 35th Street.

That acquisition allowed McSam to increase the bulk that could be utilized on East 35th St, thereby making the parcel even more valuable.

At that point, Mr. Chang decided it would be a good time sell 1 E. 35th Street.

He contacted Mr. Miller of Eastern Consolidated, who specializes in land sales, and Miller earmarked Senior Living Options Inc., with whom he had closed several previous deals, as a potential buyer.

The match was made, and with proceeds from the sale, McSam, has made several more land acquisitions in order to build moderately priced hotels in Midtown, Midtown South and Downtown.

Brian Wrynn, Esq. represented McSam in-house, while Eric H. Seltzer Esq. of Gilbride, Tusa, Last & Spellane acted for the buyer.
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Title Annotation:McSam Hotel, LLC sold land to Senior Living Options, Inc.
Publication:Real Estate Weekly
Geographic Code:1USA
Date:Jul 6, 2005
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