A proposed seller-financed acquisition, recapitalization, and component monetization framework for 124-18 Queens Boulevard — designed to acquire the asset, reposition the property, monetize the residential and commercial components, and retain the hotel and parking platform as the long-term operating engine.
† Target gross monetization is preliminary and subject to costs, reserves, transaction expenses, legal structure, market conditions, financing, approvals, and final documentation.
The revised structure responds to ownership's preference for a sale while preserving Khan Hotels' broader value-creation plan for the asset.
A cleaner path from proposal to ownership.
Following ownership's indication that a sale structure may be preferred, Khan Hotels is prepared to revise the prior master lease and phased acquisition framework into a direct seller-financed acquisition proposal. The revised structure contemplates a $50M purchase price, with ownership carrying $25M as seller financing, subject to due diligence, financing, title, legal review, lender approval, seller-note documentation, and definitive agreements.
A revised acquisition framework based on a proposed $50,000,000 purchase price.
Ownership would carry 50% of the purchase price through a seller-financed note, subject to negotiated terms.
The residential condominium and retail/commercial components may be monetized to repay seller paper, reduce basis, and strengthen the capital stack.
Khan Hotels intends to retain and operate the hotel and parking platform as the long-term cash-flow engine.
The key terms that would need to be documented.
| Term | Proposed Framework |
|---|---|
| Purchase Price | $50,000,000 |
| Seller Financing | $25,000,000 |
| Seller-Financed Portion | 50% of purchase price |
| Buyer Closing Capital | $25,000,000 through senior financing, sponsor equity, strategic capital, or a combination |
| Seller Note Position | To be negotiated; may require coordination with senior lender |
| Interest Rate | To be negotiated |
| Amortization | Interest-only or limited amortization during repositioning period, to be negotiated |
| Maturity | To be negotiated |
| Prepayment | Prepayment rights requested |
| Partial Releases | Required for residential, retail/commercial, and other component monetization |
| Security | Seller note secured by negotiated collateral package |
| Closing Conditions | Due diligence, financing, title review, legal review, lender approval, condo review, seller-note documentation, and definitive agreements |
A direct acquisition structure gives ownership a sale path while giving Khan Hotels the control required to execute the repositioning.
Seller paper allows ownership to retain income through the seller note rather than exiting entirely on day one.
Seller financing reduces the immediate third-party capital burden and allows more capital to be directed toward redevelopment, stabilization, and operations.
Residential and commercial component sales may create liquidity to repay or reduce the seller note over time.
A seller-financed framework may be more direct than a complex long-term master lease with future acquisition rights.
The broker of record may still participate in the acquisition, residential sellout, retail/commercial leasing, commercial disposition, and capital markets coordination, subject to separate agreements.
For the revised acquisition framework to work, the seller note must be structured to support the business plan. Khan Hotels would need negotiated seller-note provisions that allow component monetization, financing, redevelopment, and future repayment without blocking the value-creation strategy.
The seller note should include pre-agreed release mechanics for residential units, retail/commercial components, and other monetized portions of the property.
Khan Hotels should be able to repay or reduce the seller note from component sale proceeds without unreasonable penalty.
The seller note may need to be subordinate or otherwise coordinated with senior acquisition, bridge, construction, or redevelopment financing.
Ownership should cooperate with condominium structure review, offering-plan strategy, unit releases, lender review, and required documentation.
The parties should preserve the ability to evaluate C-PACE, energy incentives, tax abatements, public programs, and other burden-reduction tools.
Seller-note documents should include commercially reasonable notice and cure periods to protect the repositioning process.
The Atrium at 124 is intended to evoke architecture, openness, light, arrival, and permanence. The name reflects a refined hospitality identity rooted in the building's address while positioning the property as a distinguished mixed-use destination.
The Atrium evokes verticality, light, and structural grace — a name that honors the building's potential as a piece of architecture, not just an address.
An atrium is a moment of entry — a threshold between street and sanctuary. The name signals a hospitality experience defined by quiet, considered arrival.
The numeral 124 anchors the brand to its place on Queens Boulevard, transforming the address into a permanent, distinguished mark of identity.
This presentation communicates Khan Hotels' revised seller-financed acquisition vision for 124-18 Queens Boulevard. It is designed to give ownership a serious, structured sale path with seller financing, while giving the broker of record a broader execution role across the acquisition, residential, commercial, and capital markets opportunities.
A direct sale pathway with closing-day consideration plus retained yield through a seller note, subject to negotiated terms and definitive documentation.
A broader monetization opportunity beyond the acquisition itself, including potential residential sellout, retail and commercial leasing, commercial sale, and recapitalization execution.
A full repositioning plan designed to transform the asset into The Atrium at 124 — a hotel, residence, retail, medical, banking, and valet-parking platform.
Proposed Purchaser, Repositioning Sponsor, Recapitalization Partner, and Long-Term Operator.
Khan Hotels is proposing to acquire 124-18 Queens Boulevard through a seller-financed acquisition and to assume strategic control responsibility for repositioning the full mixed-use asset, including hospitality operations, residential strategy, retail and commercial strategy, parking operations, branding, management, financing coordination, and technology infrastructure.
A newly formed Khan Hotels special purpose entity would acquire the property under a proposed $50M purchase price with $25M of seller financing.
Khan Hotels would lead the hotel, residence, retail, parking, branding, design, capital improvement, technology infrastructure, and operating strategy.
The residential and commercial components would be evaluated for financing, sale, recapitalization, or other monetization strategies to repay seller paper and reduce basis.
Khan Hotels intends to retain and operate the hotel and parking platform as the long-term cash-flow engine following acquisition and repositioning.
The offer is structured as a seller-financed acquisition rather than a long-term master lease. Khan Hotels would acquire the property at a proposed $50M purchase price, with ownership carrying $25M as a seller-financed note, subject to definitive documentation.
| Offer Item | Proposed Framework |
|---|---|
| Transaction Type | Seller-Financed Acquisition, Recapitalization & Component Monetization Framework |
| Proposed Purchaser | Newly formed Khan Hotels special purpose entity |
| Proposed Purchase Price | $50,000,000 |
| Proposed Seller Financing | $25,000,000 (50% of purchase price) |
| Buyer Closing Capital | $25,000,000 through senior financing, sponsor equity, strategic capital, or a combination |
| Property Identity | The Atrium at 124 |
| Target Gross Component Monetization | Approximately $70,000,000 across residential and retail/commercial components |
| Long-Term Retained Platform | Hotel and parking operation |
| Seller Note Terms | Interest rate, amortization, maturity, prepayment, and security to be negotiated |
| Partial Releases | Required for residential, retail/commercial, and other component monetization |
| Capital Program | Redevelopment costs anticipated to materially exceed $10,000,000, including technology infrastructure |
| Closing Conditions | Due diligence, financing, title, legal review, lender approval, condo structure review, seller-note documentation, and definitive agreements |
Khan Hotels' prior master lease, recapitalization, and phased acquisition proposal may remain available as a fallback structure if the parties do not proceed with the direct seller-financed acquisition framework.
A direct sale pathway with retained yield, aligned monetization, and broker upside.
Ownership receives a clean sale outcome rather than a long-term operating lease arrangement.
Ownership receives meaningful closing-day consideration under the proposed $50M purchase price.
Ownership continues to earn yield through the seller note, subject to negotiated interest, amortization, and maturity terms.
Khan Hotels assumes full ownership-level responsibility for operations, capital improvements, taxes, insurance, compliance, and day-to-day execution.
The $10M+ redevelopment program is designed to improve the physical asset, guest experience, residential positioning, and the quality of the seller-note collateral.
Residential and commercial component sales may create liquidity to repay or reduce the seller note over time.
The broker of record may participate in the acquisition, residential sellout, retail and commercial leasing, commercial sale, and capital markets coordination.
Khan Hotels' vision is to transform 124-18 Queens Boulevard into The Atrium at 124 — a mixed-use hospitality and residential platform with a luxury arrival experience, professionally managed residences, activated retail, medical and banking tenancy, valet parking, and a long-term property-maintenance system.
The 84-room hotel would be repositioned as The Atrium at 124. Khan Hotels intends to evaluate affiliation with a major high-end hospitality franchise or soft-brand platform, subject to brand review, approval, licensing, property-improvement requirements, and final documentation.
The 38 residential units would be evaluated for branded-residence positioning, condominium monetization, professionally managed residential programs, and long-term governance through a condominium association and reserve structure, subject to condo counsel, regulatory review, lender approval, brand approval where applicable, and final documentation.
The retail and commercial component would be repositioned toward café, medical office, and banking or private-client branch uses to improve asset identity, foot traffic, credit quality, and long-term income potential.
The 44 parking spaces would be retained and operated as a controlled valet and paid-parking system serving the hotel, residence owners, commercial tenants, and visitors.
A disciplined approach to evaluating high-end hospitality brand affiliation.
The strategy preserves flexibility to pursue the best-fit upper-upscale or luxury hospitality brand platform after diligence and underwriting.
The Atrium at 124 gives the property its own premium identity, allowing it to stand on its own even before any third-party brand affiliation is finalized.
Any brand affiliation would be evaluated based on fees, property-improvement requirements, operating standards, distribution value, loyalty demand, and long-term economics.
By avoiding premature third-party brand claims, the presentation remains clean, credible, and subject to proper review and documentation.
A major high-end brand affiliation may support lender confidence, guest demand, and valuation, but should be pursued only if the economics justify the commitment.
Khan Hotels would coordinate brand evaluation with hospitality advisors, legal counsel, financing sources, ownership, and project consultants.
A documented structure for shared costs, reserves, and professional management.
Condo owners would contribute to residential building costs, common areas, residential services, insurance allocations, repairs, and reserves through disclosed common charges.
Retail, medical, café, and banking tenants may contribute to common-area maintenance, utilities, signage, cleaning, security, and shared building expenses through commercial lease structures.
The hotel component may contribute to lobby, back-of-house, mechanical, life-safety, security, exterior, and shared-facility costs through a documented allocation structure.
A dedicated reserve structure may be established for future repairs, replacements, upgrades, façade work, roof work, mechanical systems, elevators, corridors, technology infrastructure, and common-area improvements.
A separate hospitality standards and presentation reserve may be evaluated to keep the property fresh, updated, and competitive, including lobby, signage, lighting, technology, guest-facing areas, and future renovation cycles.
Khan Hotels and/or affiliated management entities may seek disclosed management, asset-management, rental-management, valet, and administrative roles where legally permitted and properly documented.
Continued participation across the acquisition, residential, commercial, and capital markets opportunities.
The broker of record may participate in advancing the seller-financed acquisition framework, subject to separate brokerage agreements.
The 38-unit residential component may create a potential condominium sales assignment or sales partnership opportunity, subject to offering-plan compliance and separate brokerage agreements.
The café, medical office, and banking or private-client branch strategy may create leasing assignments and tenant-procurement opportunities, subject to separate brokerage agreements.
Once leased and stabilized, the retail and commercial component may create a separate sale or recapitalization assignment.
The broker of record may remain aligned through senior financing, recapitalization, and component monetization coordination, subject to separate agreements.
A layered structure designed to acquire the asset, reduce upfront cash burden, and support the repositioning plan.
Ownership would carry $25M of the $50M purchase price through a seller-financed note, subject to negotiated terms and definitive documentation.
The remaining $25M of closing capital would be sourced through senior financing, sponsor equity, strategic capital, or a combination thereof.
Eligible energy, building-systems, electrification, and Local Law 97-related improvements may be evaluated for C-PACE financing, subject to owner consent, lender consent, program approval, engineering review, and final documentation.
Khan Hotels intends to evaluate applicable city, state, energy, tax, workforce, and economic-development incentives that may support the project, subject to eligibility and approval.
The 38 residential units may be evaluated for financing, condominium monetization, branded-residence positioning, or other approved recapitalization strategies to repay seller paper.
The café, medical office, and banking or private-client branch strategy may support commercial leasing, sale, financing, or recapitalization to reduce basis.
No incentive, financing, C-PACE loan, public benefit, tax benefit, brand affiliation, sale, seller-note term, or monetization result is guaranteed. All items remain subject to diligence, legal review, lender approval, owner approval, market conditions, program eligibility, and final documentation.
The business plan continues to target approximately $70M of gross component monetization from the residential and retail/commercial components. Net proceeds may be used to reduce seller financing, repay senior debt, fund reserves, support redevelopment, return capital, and reduce the retained basis in the hotel and parking platform, subject to legal structure, costs, lender approval, market conditions, and definitive documentation.
Net proceeds from component monetization may be applied to repay or reduce the seller note.
Proceeds may be applied to reduce senior acquisition, bridge, or redevelopment financing.
Proceeds may support the $10M+ redevelopment program across hotel, residential, retail, and building systems.
Proceeds may fund capital reserves, hospitality reserves, and operating reserves.
Net proceeds reduce the retained basis in the hotel and parking platform, the long-term operating engine.
A phased path from documentation to closing, stabilization, and component monetization.
Ownership and broker of record review the revised Khan Hotels seller-financed acquisition proposal and strategic repositioning plan.
Parties begin negotiating the purchase and sale agreement, seller note, security documents, partial-release mechanics, and lender coordination.
Khan Hotels completes legal, condo, title, engineering, environmental, operational, financing, and capital-stack diligence.
The acquisition closes and Khan Hotels assumes operational control, begins stabilization, staffing, systems, branding, and vendor transition.
Hotel, residential, retail, parking, lobby, building systems, technology infrastructure, and common areas are improved through a phased capital program.
Residential and commercial components are evaluated for sale, financing, leasing, recapitalization, or other monetization strategies.
Net proceeds may be applied to repay or reduce the seller note, while Khan Hotels retains the hotel and parking platform as the long-term operating engine.
The following clarifications are part of this presentation and should be reviewed with counsel.
The proposal remains non-binding unless and until definitive agreements are fully negotiated and executed by all applicable parties.
Seller financing is proposed and subject to negotiated terms, lender coordination, intercreditor requirements, and final seller-note documentation.
The proposed $50,000,000 purchase price is preliminary and subject to a fully executed purchase and sale agreement.
The Atrium at 124 may target affiliation with a major high-end hospitality franchise or soft-brand platform. No third-party hotel brand approval, license, affiliation, endorsement, or right to use brand marks is implied.
The approximate $70M target gross component monetization is preliminary and subject to market conditions, legal structure, regulatory approvals, buyer demand, costs, and execution.
Any residential condominium, branded-residence, rental-management, association, common-charge, or reserve structure must be reviewed by condo counsel, regulatory counsel, lender counsel, and offering-plan counsel.
A clear path from proposal review to purchase documentation.
Khan Hotels is prepared to move the revised seller-financed acquisition framework into the next stage of discussion with ownership, the broker of record, counsel, lenders, and project advisors.
Ownership may confirm interest in advancing the proposed seller-financed acquisition, recapitalization, and component monetization framework.
The parties begin negotiating the purchase and sale agreement, seller note, security documents, partial-release mechanics, lender coordination, and definitive transaction agreements.
Khan Hotels would receive access to title, zoning, condo documents, operating history, hotel records, engineering reports, environmental materials, tax records, violations, permits, lender information, and building systems information.
Ownership and Khan Hotels confirm how the broker of record may participate in the acquisition, residential sellout, retail and commercial leasing, commercial disposition, and capital markets coordination, subject to separate brokerage agreements.
Ownership would be asked to reasonably cooperate with senior financing, C-PACE evaluation, public incentives, energy incentives, tax-abatement review, lender consents, condo-structure review, and redevelopment approvals, subject to definitive documentation and counsel review.
The parties schedule a transaction call with ownership, broker, counsel, and Khan Hotels to establish the purchase contract and seller-note documentation timeline.
What Khan Hotels is requesting from ownership.
The revised seller-financed acquisition framework creates a direct path to sale with retained yield and aligned monetization.
A seller-financed acquisition gives ownership a clean sale outcome rather than a long-term operating lease arrangement.
Khan Hotels would assume full ownership-level responsibility and lead the hospitality, residential, retail, parking, and common-area repositioning strategy.
Ownership receives closing-day consideration and continues to earn yield through the seller note, subject to negotiated terms.
The proposed plan anticipates a major redevelopment program materially exceeding $10M to improve the physical asset, guest experience, residential positioning, commercial spaces, technology infrastructure, and building systems.
Residential and commercial components may be monetized to repay seller paper, reduce basis, and strengthen the long-term capital structure.
The residential component may be independently structured, financed, marketed, and monetized to support seller-note repayment, capitalization, and stabilization.
The café, medical office, and banking or private-client branch strategy is designed to strengthen the building's identity, income profile, tenant quality, and disposition potential.
The broker of record may gain participation opportunities across acquisition, residential sellout, retail and commercial leasing, commercial sale, and capital markets coordination, subject to separate agreements.
Recommended agenda for the next call.
Key agreements expected to move the transaction forward.
Initial materials requested from ownership to move forward.
| Category | Requested Materials |
|---|---|
| Title / Ownership | Deed, title report, entity ownership chart, existing liens, lender information |
| Zoning / Legal Use | Certificate of occupancy, DOB records, zoning analysis, use approvals |
| Hotel Operations | Historical P&L, occupancy, ADR, RevPAR, staffing, vendors, licenses, permits |
| Residential Component | Condo documents, unit schedule, floor plans, rent/sale history, residential legal structure |
| Retail / Commercial | Existing leases, tenant history, rent roll, commercial floor plans, arrears if any |
| Parking | Garage plans, space count, lift systems, licenses, operating history, violations |
| Building Systems | Mechanical, electrical, plumbing, elevators, HVAC, roof, façade, fire and life safety, technology infrastructure |
| Taxes / Assessments | Property tax bills, assessment history, tax exemptions, abatements, pending assessments |
| Insurance / Claims | Insurance policies, claims history, loss runs |
| Violations / Compliance | DOB, ECB, HPD, FDNY, OSE, health, environmental, and hotel-related violations |
| Environmental | Phase I, Phase II if any, asbestos, lead, mold, tanks, remediation history |
| Financing / Lender | Existing loan documents, payoff information, senior-financing coordination, intercreditor requirements |
| Energy / LL97 | Benchmarking, energy bills, Local Law 97 exposure, prior audits, utility records |
Ownership and broker review the revised Khan Hotels seller-financed acquisition presentation and confirm willingness to proceed.
Parties hold transaction call with ownership, broker, counsel, and Khan Hotels to align on purchase price and seller-financing structure.
Ownership provides initial diligence materials and existing lender and consent information.
Counsel begins drafting the purchase and sale agreement, seller note, security documents, partial-release mechanics, and related transaction agreements.
Khan Hotels advances senior-financing arrangements, capital stack, C-PACE and incentive review, hotel repositioning plan, residential strategy, retail and commercial strategy, and broker alignment terms.
Khan Hotels views 124-18 Queens Boulevard as a rare mixed-use hospitality asset capable of becoming The Atrium at 124. The revised seller-financed acquisition framework gives ownership a direct sale path with retained yield, gives the broker of record expanded execution opportunities, and gives Khan Hotels the control needed to acquire, improve, recapitalize, operate, and monetize the asset.
Khan Hotels is prepared to move the revised seller-financed acquisition framework into purchase and seller-note documentation. Ownership may confirm interest in accepting the acquisition framework in principle and proceeding to the next stage of legal, diligence, financing, and transaction review.
Acceptance of the acquisition framework is intended only as an indication of interest to proceed. No purchase, sale, seller-note, financing commitment, franchise affiliation, condominium offering, or other agreement shall be binding unless and until definitive documents are fully negotiated and executed by all applicable parties.
Ownership, the broker of record, or approved transaction participants may submit this form to indicate interest in moving the revised seller-financed acquisition framework toward diligence, counsel review, financing review, and definitive documentation.