Hotel Azure asking price cut to $23.8 million

By Roland Li

Hotel Azure, an 11,047 s/f hotel with 1,460 s/f of retail, is on the market for $23.8 million. The Chinatown property, at 120 Lafayette Street, was originally listed for $29 million in October. It has a 7% capitalization rate.

The listing brokers are Wei Min Tan, an executive vice president of Castle Avenue Partners at Rutenberg Realty, and his partner, Susan Chan.

The building’s retail income makes up around 40% of the property’s revenue, with asking rents around $750 per s/f, said Tan. It has 10 retail spaces that are fully leased with one-year terms to small tenants, including souvenir and handbag shops. If a larger, credit-worthy tenant was chosen to replace them, the rent would be slightly lower, said Tan.

The asking price was decreased to reflect the lesser rent that a larger tenant would pay, said Tan.

The 28-room hotel portion has an average rate of $210 per night, and ranging from $180 to $400 depending on season.

“Hotels are doing well because of several factors,” said Tan. “There has always been very limited supply, especially in Manhattan.”

In addition, tourism has fueled activity – European tourists make up the bulk of Hotel Azure’s business. And despite its proximity to other hotels, including a Holiday Inn at 138 Lafayette Street and Mondrian Soho at 9 Crosby Street, Hotel Azure has an average of 90% occupancy. Tan credits its location, on the corner of Canal Street and adjacent to a subway station, as a major selling point. There are no comparable buildings in the area that on the market, he said.

The long-time owner of 120 Lafayette, Tai Fook Corporation, is selling to redeploy capital for other investments.

The building has received around 100 inquiries since being on the market, including prospective buyers from the Middle East and California. Three offers were submitted, but none closed. Tan expects the building to sell within six months.

Chinatown has seen some new development, but inventory for sale remains scarce. In some cases, ownership of buildings is split, or uncertain. New construction has stalled because of lack of credit, although there are plots that are not built to maximum zoning. A contentious rezoning plan is being debated by various stakeholders, along with other changes to the community.

Related Posts Plugin for WordPress, Blogger...
  • Pingback: Linkage: Strange Smell at Trump Place; Glassy Brooklyn Tower Unfrozen? - The Broker Buddy()

  • Pingback: Real Estate Weekly » Blog Archive » Chinatown retail building, with 18,000 s/f of air rights, on the market for $30 million()

  • I’d prefer to make sure you actually the only thing that it is a most effective hotel room in britain. The grade of a high quality expert services by using low-priced amount plus cheap give.

  • The location is very good and you can easily access most of Manhattan by train. The rooms are clean but extremely small, at least the “Queen size” may be too crowded for more than one guest.

  • If you have children, there are several privately run, English speaking schools that teach the UK curriculum. You will have to pay between 5,000 and 10,000 euros per annum for your child to attend these schools. In comparison to private school fees in the UK this is very cheap. Private schools in Spain offer small class sizes and pass rates are above average. I would recommend a private school for older children, but, if you have young ones, and considering living permanently in Spain, sending them to a Spanish state school will be more beneficial for them as they will be fluent in Spanish in a very short time and integrated in to the Spanish way of life.

  • This is
    a nice content.In comparison to private school fees in the UK this is very
    cheap.This is a good written skill.Keep it up.Thanks to share this blog.

  • location, condition and price is the best words to think about when looking a place to live in. I think this one is good too.

  • This is a good choice in manhattan. Very peaceful.

  • it’s too much for this

  • it’s too much for this

  • Hey, I just hopped over to your site . Not something I would usually browse, but I appreciated your views none the less. Thanks for creating something worthy of reading.. Just thought I’d drop you a line to tell you your site really rocks! I have been looking for this sort of information for a long time.

    Foreclosures

  • As people tend to have less to spend on their annual holiday these days it makes sense to look at all of the options. In the past many holidaymakers have chosen a package deal in a hotel but in recent times more and more people are booking their flights and accommodation for themselves and saving money. For example if you want a holiday villa for rent in Spain you can book direct with the property owner by searching on a website which lists privately owned properties for rent. You simply contact the owner and book your holiday rental directly with them. Popular towns in the north of the Costa Blanca to book a villa holiday in Spain are Calpe, Javea, Benissa and Denia.

  • 90% occupancy is a little too high by many hotel standards.  ROI should see a bump if it could be kept around 85%.  That small bump in rates would more than offset the 5% drop in occupancy and not stress the staff as much.

  • asasasasasasasasasa

  • Hi there, I hopped over to your web blog. Never a little something I will often scan, nonetheless I actually prized a person’s ideas none of them a a reduced amount of. With thanks to get building a little something worth looking through.. Just simply assumed I’d shed that you’ set to make sure you actually your web blog seriously stones! Photograph interested in this information and facts for long periods.

  • Last year, I started a business club for women – which has grown and we are actually hosting International Women’s Day. It just goes to show the power of women to make something out of nothing. This is a club of international women who have come to live on this coast.

  • Drinking and Driving in Spain is normal. Death is cheap on the motorways. Every weekend families say goodbye to loved ones as the jaws of death scrape the mangled bodies of young and old from a twisted up piece of metal that used to be a car. Beer is not considered a dangerous drink, yet it has a 5% alcohol content. If you do need to get one you can go through the Drive-Thru window at your nearest McDonalds. Both wine and spirits are very cheap in Spain – so it is an alcoholic’s dream come true.

  • Mallorca is by far the most well known for many of these stunning islands and is home to the port city and capital of the islands, Palma. Many who visit this island return time and time again, thanks to the beautiful scenery, dramatic landscapes and wonderful views and scents from the natural vegetation which includes olive trees and oranges. The capital is easily accessible from the tourist resorts to the east and boasts an extensive bus network.

  • The asking
    price was decreased to reflect the lesser rent that a larger tenant would
    pay.This is a amazing.I am very impressed to this content.This is an amazing
    post.Thanks o share this blog with us.Keep sharing.I will keep share in
    future.

  • HI, 

    Thanks guys for sharing news about that Hotel Azure asking price cut to $23.8 million. Its really big news guys, You have done really great work to share it. 

  • Hello..
    I was not aware of the facts related to the hotel. I am glad I visited here and come to know about it. I have gathered a huge knowledge being here.

  • Great post! Really relevant for my search..

  • Anonymous

    Based off the price, the Hotel Azure seems to be some prime piece of real estate. I’m sure the location doesn’t hurt either. I’m sure they always stay booked up with tourist.

  • From my point of view i think going for rental property when you are enjoying holiday is a better option then from having deals with some luxurious hotels which charges a lot.

  • Well, I expect it’s gone now, but at that reduced price, I’ll take two please!

  • Really it is nice
    post and thanks for sharing it
     

  • I found your post
    good and informative. I like your article. Thanks for sharing it.
     

  • You have done a
    great work really. A lots of efforts behind this.
     

  • thanks for
    energetic post
     

  • It article offers a large numbers of information in regarding to real estate.

  • thanks for
    energetic post
     

  • Great Blog. I add
    this Blog to my bookmarks.
     

  • Thanks for great
    index of very useful resources in a single page.
     

  • You have done a
    great work really. A lots of efforts behind this.
     

  • Good concept!
    Thanks for sharing, But i m waiting for your new work.
     

  • I love your
    blog,helpful, thanks for sharing!
     

  • Thats a good asking price for 28-room hotel portion has an average rate of $210 per night, and ranging from $180 to $400 depending on season.

  • Why a sudden decision on selling Hotel Azure out on the market?

COPYRIGHT 2015 REAL ESTATE WEEKLY. ALL RIGHTS RESERVED.