A hotel-turned-homeless shelter in the tiny Blissville section of Long Island City, Queens, sold to a Brooklyn-based developer for $36.5 million, property records show.
Shulem Herman bought the Fairfield Inn at 52-34 Van Dam Street between Starr Avenue and 34th Street from the family-run Lam Group in a deal that closed on Nov. 16, according to property records made public in November.
Lam and Herman did not immediately respond to requests for comments on the sale and it wasn’t clear who brokered the deal. Herman financed the deal with a $23.2 million mortgage from Sterling National Bank.
It was also unclear in property records when exactly the Lam Group bought 52-34 Van Dam Street, but the company and Sing May Realty first took out a $12 million mortgage on the property in 2006. Sing May Realty picked up the property for $2.3 million a year before. Sing May transferred the property to the Lam Group in 2012, property records show.
The 12-story hotel began housing up to 154 homeless families in March as part of Mayor Bill de Blasio’s Turning the Tide plan to fight back against the city’s rising homeless rates, The LIC Post reported.
The property is also a block away from 52-02 Van Dam Street where developer Sam Chang plans to build a 14-story hotel with 282 rooms, The Real Deal reported.
This story is a few months old, but this bares repeating. Developers are capitalizing on the homeless crisis and the fauxgressive Mayor is allowing it to happen. This is the real affordable housing plan.