Prime 50’s Off 5th Ave Luxury Hotel & Residential Condo Development Opportunity (Plaza District NYC)


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

Projected capital structure: $56.5MM ($20MM equity ($15.5MM for site acquisition), $36.5MM debt LTC 65%)

41.9k gsf (12 residential units 9k nsf / 80 hotel keys 23k sf / 8k sf – 2 level restaurant / 1-2 sub level wine bar / spa lounge)

This is a very unique off-market private equity commercial real estate development opportunity to acquire a historic site steep in epic stories of heroism, artistry, romance, and global adventures.  The site was once the center of inspiration and dreams come true. A legendary place of culinary and literacy magic where pure imagination became reality.  Now a visionary developer can continue the historic traditions by acquiring this rare property situated on a prime location with flexible zoning and make a new dream into reality. 

The site’s prime location is suitable for various potential development types, including luxury hotel, luxury condominium, retail, and office.  After evaluating various development options, we concluded that the high and best use for the site is to build a mixed-use twenty-five story boutique luxury hotel and residential condo tower with an award-winning restaurant in the two-level retail space along with a sublevel wine bar / spa lounge in the cellar.  

This project is located in one of the most desirable and prime real estate areas in Manhattan (right off Fifth Avenue).  The immediate area is surrounded by ultra-upscale retail on Fifth Avenue, Madison Avenue and surrounding area; fine dining, Class A office buildings, and luxury residential on Park Avenue/Madison Avenue.  The site is conveniently located steps away from many New York landmarks such as Central Park, Carnegie Hall, Rockefeller Center, Radio City Music Hall, Broadway Shows, St. Patrick Cathedral, MOMA, Christies, and Sotheby’s.  

The site is also right next to major transportation hubs, including major subway and bus routes easily accessible to other major tourist and business attractions in the financial district, the Village, and Meatpacking District.

Value Proposition This is a unique investment opportunity to acquire an existing property on a historic site in an incredible location near the highest retail value district in the world that is also strategically located next to a transit station.  Building a mixed-use twenty-five story residential condo and luxury hotel tower with a high-end restaurant and sub-level wine bar/spa lounge located in the epicenter of Manhattan’s shopping, tourism, and business district is a winning formula.  The site will be delivered vacant at closing. 

Control of Land and Current Status
This is a once-in-a-lifetime opportunity because the property is owned and controlled by a long-term passive owner.  The long-term holder is willing to negotiate a small discount to full market value of the property in return for a quick close and potential participation in back-end equity on the future development potential for the site.  The owner has already conducted up to date due diligence – appraisal, architect designs, and zoning analysis.  A developer will be able to quickly build an iconic mixed-use property strategically located in one of the most exclusive areas in all of midtown Manhattan.   

Economic Trends Favor Hotels as a Long-Term Investment Following a hotel competitive market analysis, we believe that a hotel development project will be well received in the current market, and will cater to domestic and international tourist and business travelers since the site is near major tourist attractions, restaurants, and night life in the heart of Manhattan’s shopping, tourism, and business districts.

A hotel will also greatly benefit from the new macroeconomic trend – long-term weakening cycle in the U.S. dollar along with higher commodity prices, which will force domestic travelers to travel closer to home.  A weak dollar will also provide greater purchasing power for international tourists to shop and visit major NYC attractions.

NYC is the leading financial and business capital of the world and a major transit hub which draw lodging demand from domestic tourist and international visitors.  As a mega-city NYC benefits from many positive long-term economic forces such as diverse job creation, tourism growth, and business travel which will continue to lead to strong hotel demand.   The headquarters of major global and domestic companies in media, high fashion, entertainment, and finance are all located in the surrounding areas. 

This development investment opportunity offers strong returns and a profitable investment in a prime hospitality development project off Fifth Avenue, strategically located in the prestigious Plaza District of Manhattan.

The hotel provides business and leisure travelers value-added, luxury at an affordable price point, while enjoying a stylish, trendy hotel with award-winning dining, comfortable accommodations, key services, and amenities all in the heart of New York City’s shopping district.  For the business traveler, the location is superb with access to major firms along Park Avenue, Madison Avenue, Fifth Avenue, and surrounding commercial areas.

Current Land Valuations: The property was recently appraised as-of-right between $15.5MM to $18.8MM (41.9K sf, $370sf to $449sf).   

Comps: Recent land purchases in the area were all above $2,500 psf +

Project Valuations: Can potentially acquire land at below market price (off-market) at $15.5MM / Hard costs $26.2MM / Soft costs $5.7MM

Total all-in costs: $56.5MM, $1,350gsf / $1,414zsf / $1,625nsf (including hard and soft, contingency and financing costs)

Using current market comps. we project the following: Hotel projections: 80 keys (275sf/room) (55% of asset mix), 80% occupancy, $350 ADR, $280 RevPar, operating expenses 65% =

GI $8.2MM / NOI $2.9MM, Exit Cap Rate 6.5% = $43MM MV (positioned as luxury boutique hotel $320-380 ADR)

Residential condo sell-out projections: $3,500/nsf (26% of asset mix) = GI $31.2MM / NI $29.4MM

*Avg. comparable condo without central park views in area = $3,600-$4,200

Retail projections: 7k sf restaurant / wine bar / spa lounge: $160/sf (19% of Asset Mix) = GI $1.1MM / NOI $756K

Exit Cap Rate 4.5% = $16.4MM MV

Investment Metrics – Hotel & Retail Net Income $3.6MM / 9% annualized yield to cost / $388k cost per key

Investor ERM: 2.6x, IRR: 48%, Net Profit: $32MM (Assumption: $20MM equity needed, asset mix 55% hotel, 26% condos, 19% retail) *before depreciation tax shield

Time line:  3.3 years (24 months construction, 3 months sell-out, 12 months hotel stabilized)

*This asset is a high quality off-market investment opportunity in a prime 50’s location next to a major transit station

Oxstones Real Estate,

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