Cushman & Wakefield has launched marketing for a 1.9-acre development parcel near JFK International Airport in Queens. The 81,591-square-foot property at 142-30 135th Avenue and 135-25 142nd Street, which parallels Belt Parkway in South Ozone Park, could be sold for about $39m. “There have been no new developments in some time around JFK Airport – the complete lack of product is a significant reason why mid to higher-priced hotels do very well there,” said Stephen R. Preuss, senior managing director. “The amount of interest has been staggering.”
The site, however, will have more buildable square feet if it is not developed as a hotel. “Some residential, retail and community facility developers have expressed interest in building a corporate headquarters, big-box retail or residential complex on the site,” noted Preuss. The site is suitable for retailers such as The Home Depot and Costco.
The site, owned by 135th Avenue JFK Property LLC, is pre-approved for development as two adjacent hotels under the Marriott flag, a Residence Inn and JFK Marriott. The Residence Inn is approved for development as a twelve-story, 93,752 square foot hotel with 182 rooms. The 177,266-square-foot JFK Marriott would be 11 stories with 362 keys. “Marriott is typically one of the harder flags to get,” said Preuss. “The ownership has relationships with Marriott and at one point in time did plan on building a hotel but changed their plans.”
The JFK hotel submarket has seen a 90% occupancy rate, with an average daily room rate of $164 per night over the course of the last two years – much higher than the LaGuardia Airport.“Billions of dollars were pumped into the LaGuardia renovation and JFK is the next shoe to drop – a renewed budget plan has been preliminarily approved for JFK,” said Preuss. “JFK has not been properly sized for hotels – it’s the best performing hotel submarket in New York City. We’re seeing a flight for hotels gearing up like there was for LaGuardia.”
The land will be subdivided into two contiguous lots, and is zoned for a maximum of 391,638 buildable square feet for commercial, residential, or mixed-use development. The site is currently being used as a parking lot for surrounding business, and will be delivered to the buyer vacant of parking. The site is close to the Van Wyck Expressway, Belt Parkway, JFK Expressway, Resorts World Casino, Aqueduct Racetrack, and the nonprofit therapeutic riding program Gallop NYC’s Sunrise Stables.