Description

Jones Lang LaSalle Americas, Inc. (“JLL”), a licensed real estate broker, has been retained as an exclusive advisor to ownership to arrange the sale of The Tuscany (referred to as the “Hotel” or “Property”), located at 120 East 39th Street, New York, NY 10016.

Originally built in 1928 as a residential building and converted to a hotel in the 1950's, the Property holds a storied past as a hotspot that welcomed notable guests including Audrey Hepburn and was the first hotel in New York City to offer telephones in every bathroom. The 17-story, 125-unit property remains one of the most spacious accommodations in Midtown Manhattan, with nine-foot ceilings and spacious guestrooms exceeding 450 square feet. Situated steps from Grand Central Terminal in the Murray Hill neighborhood, the Property combines historic character with modern convenience.

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Attributes

Units

125

Stories

Gross Building Area

88,463 SF

Typical Floor Size

5,204 SF

Usable Square Footage

68,685 SF

Brand / Management

Unencumbered

Year Built / Renovated

1928 / 2013

Media

Investment highlights

Multiple Execution Strategies

The Tuscany presents a unique value proposition with multiple execution pathways for prospective owners. Given the Property's residential origins and spacious layouts, investors can pursue a residential conversion to capitalize on Murray Hill's thriving residential market or maintain current hotel operations in a high-demand Midtown location.

High-Quality Existing Building Fundamentals

The current 17-story structure comprises 68,685 usable square feet across 125 units, offering efficient floor plates, strong street frontage, and flexibility for conversion or redevelopment. Nine-foot ceilings, ample light and air, and an attractive pre-war façade make it suitable for high-end residential product. Its scale and configuration align well with both adaptive reuse and ground-up development strategies.

Premier Location with Unmatched Connectivity

The Property's prime Midtown location offers immediate access to Grand Central Terminal, the Empire State Building, and Fifth Avenue's luxury retail corridor, surrounded by Fortune 500 headquarters including Blackstone and JPMorgan Chase. Key demand drivers include Koreatown, the New York Public Library, and Summit One Vanderbilt. Unparalleled connectivity via Grand Central, Penn Station, East 34th Street Ferry, and multiple subway stations positions the Property at the epicenter of Manhattan's business and cultural landscape.

Value-Add Levers to Generate Additional Upside

New ownership can either reposition the Hotel through comprehensive renovations of guestrooms and public spaces or pursue a residential or condominium conversion to capitalize on the Property's prime location within one of Manhattan's most established residential neighborhoods, leveraging the area's robust housing demand and premium pricing fundamentals.

Minimal New Hotel Supply

There is minimal new hotel supply in the submarket, with only two properties scheduled to deliver 372 keys in 2026. Since 2020, 191 hotels citywide have permanently closed, including 55 in the Midtown South submarket. This has strengthened fundamentals and created a favorable supply-demand dynamic. Notably, the Sonder by Marriott located one block from the Property closed in 2025. With virtually no new development to offset these closures, remaining hotels in the immediate area are well-positioned to capture increased demand.

NYC Strong Multifamily Fundamentals

New York City's strong multifamily fundamentals, characterized by a 2.7% vacancy rate (577 bps below the national average) and an 85.0% collapse in new building permits since 2022, create a compelling opportunity for hotel-to-residential conversions. Converting underperforming hotel assets allows investors to deliver stabilized residential product within 18-24 months into a supply-constrained market with sustained annual absorption of 20,000-26,000 units. This strategy captures the significant spread between distressed hospitality valuations and strong residential fundamentals while sidestepping the constrained development pipeline.