Kash Group and Shel Capital are in contract to acquire, for $41 million, the 17-story, 117-key Morgans Hotel at 237 Madison Avenue, located between East 37th and East 38th streets in Murray Hill. The incoming property owners plan to convert the 71,000-square-foot structure into a mix of uses.
The ground floor is slated to become a restaurant, followed by three floors of hotel rooms or corporate housing, The Real Deal reported. The fifth through 17th floors are expected to be converted into 90 condominiums. The apartments will be small, averaging roughly 300 to 325 square feet apiece.
The developers also plan to utilize 1,500 square feet of air rights for an expansion. The conversion will occur after the acquisition closes, which is expected next month. Alteration permits have not been filed at this time.