Eastern Consolidated is marketing Extell Development Co.’s 95-year leasehold interest in a Hudson Square development site at 68-74 Charlton Street for $45 million.
Eastern Consolidated’s Brian Ezratty, vice chairman, is the listing broker.
Extell had plans to construct a 35-story, 181,000-square-foot luxury hotel on the site, known as 61-63 Vandam Street.
“Alternatively, the site has the potential to be repositioned for a specific commercial, not-for-profit or institutional use,” said Ezratty in a statement. “It could serve well as the permanent headquarters for a corporation or for use by a local school, for example.”
The property, between Charlton and Vandam Streets, is 15,142 s/f, with development rights of 181,535 s/f, according to Eastern Consolidated. A hotel development could be 35 stories, with 309 units, with room sizes ranging from 350 s/f to 646 s/f. The ground floor could include a hotel lobby and a restaurant and bar with plaza access. The planned hotel could have 3,500 square feet of meeting space, a spa, a rooftop bar and a 5,000-square-foot public plaza on Vandam Street.
“With 95 years remaining on the lease, there would be sufficient time to build a large scale development and realize a return on invested capital,” said Ezratty in a statement. “The site features pre-set rent increases, as opposed to onerous re-appraisals, that could diminish the value of such ground leases as time goes on.”
Currently vacant and ready for development, the parcel comes equipped with preliminary drawings for a high-rise, luxury hotel. The 95-year triple net lease is set to expire in 2106.