The McSam Hotel Group has made a tidy putting up low-end hotels in up-and-coming Brooklyn neighborhoods in recent years but that’s all coming to an end. (Of course, the company’s made even more money flipping properties in Manhattan.) “We were very bullish on Brooklyn — past tense,” COO Gary Wisinki told The Real Deal. “Our hotels have done well, but we are very concerned with the amount of product planned for the borough.” (This isn’t exactly breaking news—Chang said something similar over a year ago at a Chamber of Commerce event.) One neighborhood in particular has been the target of McSam’s affections in recent years: Sunset Park. Starting with the Days Inn at 435 39th Street (photo), the developer has a total of six hotels either finished or in progress in the area. Gowanus is also giving Sunset Park a run for its money: There are currently three recently completed hotels in the rapidly-transforming nabe and another six in the works. Much of this boom can be attributed to zoning that prohibited condos and rental buildings while allowing hotels. “If you had a dilapidated warehouse that wasn’t good for anything else,” said broker Ofer Cohen, “you could sell it as a hotel development site.”
Sun Sets on Hotel boom in Brooklyn Nabe [TRD] GMAP
Brooklyn Hotel Buzz: Boom and Doom [Brownstoner]
Photo by Kate Leonova for Property Shark