A proposed master lease, recapitalization, and phased acquisition framework designed to reposition 124-18 Queens Boulevard into a luxury hospitality, residential, retail, commercial, and valet-parking platform.
Proposed high-end hospitality brand affiliation strategy subject to review, approval, licensing, and final documentation.
† Target gross monetization is preliminary and subject to costs, reserves, transaction expenses, legal structure, market conditions, financing, approvals, and final documentation.
Khan Hotels' objective is to control, improve, stabilize, recapitalize, and ultimately acquire the property through a professionally managed process that aligns tenant, ownership, broker, lender, and future buyer interests.
The Atrium at 124 is intended to evoke architecture, openness, light, arrival, and permanence. The name reflects a more refined hospitality identity rooted in the building's address while positioning the property as a distinguished mixed-use destination.
The Atrium at 124 is the proposed repositioned identity for the property — a boutique hospitality and residence vision designed as a luxury mixed-use platform with hotel, residences, retail, commercial, and valet parking.
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 has been prepared to communicate Khan Hotels' strategic vision for 124-18 Queens Boulevard. The proposed framework is intended to give ownership a serious, structured path to asset stabilization and eventual monetization, while giving the broker of record a broader execution role through potential residential condominium sales, retail and commercial leasing, retail and commercial disposition, and capital markets coordination.
A long-term structure designed to protect asset value, create contractual control, support major capital improvements, and preserve a future acquisition path.
A broader monetization opportunity beyond the initial transaction, 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 Master Tenant, Repositioning Sponsor, Recapitalization Partner, and Future Acquirer.
Khan Hotels is not approaching 124-18 Queens Boulevard as a short-term operator. Khan Hotels is proposing to become the strategic control party responsible for repositioning the full mixed-use asset, including hospitality operations, residential strategy, retail and commercial strategy, parking operations, branding, management, financing coordination, technology infrastructure, and long-term acquisition planning.
A newly formed Khan Hotels special purpose entity would enter into a proposed long-term NNN master lease for the full property.
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.
The structure preserves a future acquisition pathway through purchase option, ROFR, ROFO, and an approximate $57M acquisition framework.
The offer is structured as a master lease, recapitalization, and phased acquisition framework rather than a simple day-one purchase. This gives Khan Hotels the ability to stabilize and improve the property while preserving ownership's long-term economic position and creating a pathway toward acquisition after the property has been repositioned.
| Offer Item | Proposed Framework |
|---|---|
| Transaction Type | Master Lease, Recapitalization & Phased Acquisition Framework |
| Master Tenant | Newly formed Khan Hotels special purpose entity |
| Lease Type | Triple Net / NNN |
| Total Lease Term | 30 years |
| Initial Term | 15 years |
| Renewal Option | One additional 15-year renewal option |
| Year 1 Rent | Fully abated |
| Year 2 Rent | $1,200,000 annually |
| Year 3 Rent | $1,800,000 annually |
| Years 4–5 Rent | $2,400,000 annually |
| Years 6–10 Rent | $2,520,000 annually |
| Years 11–15 Rent | $2,646,000 annually |
| Years 16–20 Rent | $2,778,300 annually |
| Years 21–25 Rent | $2,917,215 annually |
| Years 26–30 Rent | $3,063,076 annually |
| Security Deposit | Proposed $1,700,000 cash security deposit |
| Capital Program | Redevelopment costs anticipated to materially exceed $10,000,000, including technology infrastructure |
| Future Acquisition Framework | Approximately $57,000,000, subject to due diligence and final documentation |
| Purchase Rights | Exclusive purchase option, ROFR, and ROFO |
A framework designed to create stability, improvement, and long-term alignment.
Ownership receives a clear, professionally managed plan for the entire property rather than a narrow hotel-only operating proposal.
Under the proposed NNN structure, Khan Hotels would assume responsibility for taxes, insurance, utilities, maintenance, repairs, staffing, regulatory compliance, operating expenses, and day-to-day operations.
The plan anticipates a redevelopment program materially exceeding $10M, including hotel renovations, residential improvements, FF&E, lobby redevelopment, building systems, elevators, life safety, technology infrastructure, retail repositioning, and operational upgrades.
The repositioning plan is designed to improve the property's physical condition, market identity, operating performance, and long-term value.
Purchase option, ROFR, ROFO, non-disturbance, and successor protections are intended to preserve a pathway toward a future acquisition rather than a short-term operating lease.
The structure creates potential future execution opportunities for the broker of record through residential condominium sales, retail and commercial leasing, commercial sale, and strategic recapitalization assignments, subject to separate agreements.
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.
Khan Hotels intends to preserve brand flexibility while developing The Atrium at 124 as a refined hospitality and residential platform. The objective is to create a property identity strong enough to stand on its own while remaining eligible for potential affiliation with a major high-end hospitality franchise or soft-brand platform.
A long-term property stewardship structure designed to keep The Atrium at 124 maintained, upgraded, and premium.
Khan Hotels intends to evaluate a professionally structured condominium governance and property-reserve system for the residential, commercial, hotel, parking, and shared-facilities components. The purpose is to keep the property maintained at a high standard, fund future repairs and improvements, support brand-level presentation, and avoid the deferred-maintenance cycle that weakens mixed-use assets over time.
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.
A disciplined operating platform, not just a one-time transaction.
Beyond the initial lease and acquisition framework, Khan Hotels' plan is to create a professionally managed property ecosystem. Potential recurring income and fee opportunities may include hotel operations, parking and valet operations, residence rental-management fees, commercial management fees, association administration fees, and shared-service management fees, subject to legal review, disclosure, documentation, and approvals.
| Potential Revenue / Fee Stream | Purpose |
|---|---|
| Hotel Operations | Long-term retained hospitality income platform |
| Parking / Valet Operations | Paid parking, valet services, monthly licenses, hotel guest parking, and commercial visitor parking |
| Residence Rental Management | Professional management of participating residence units, subject to legal and regulatory approvals |
| Commercial Management | Management or oversight of café, medical, banking, and retail and commercial tenancy |
| Association Administration | Potential disclosed administration or management role for property governance and shared facilities |
| Shared Services | Security, cleaning, maintenance, technology, concierge, signage, and common-area management |
Association funds, common charges, CAM charges, and reserves should be used for property expenses, maintenance, and capital planning. Any management or administrative fees must be properly disclosed, documented, and reviewed by counsel.
A high-end hospitality identity designed to preserve optionality.
The Atrium at 124 is proposed as a refined independent hospitality identity with the flexibility to pursue affiliation with a major high-end hospitality franchise or soft-brand platform. Rather than locking the repositioning plan to a single brand before diligence, Khan Hotels intends to evaluate the best-fit brand pathway based on the property's condition, renovation budget, market positioning, operating model, lender requirements, franchise economics, and long-term acquisition strategy.
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 disciplined framework Khan Hotels intends to apply when assessing potential high-end hospitality brand pathways for The Atrium at 124.
| Evaluation Area | Key Question |
|---|---|
| Market Fit | Which high-end brand platform best fits Kew Gardens, Queens Boulevard, courthouse demand, airport access, medical demand, corporate demand, and residential demand? |
| Property Standards | What renovation, FF&E, life-safety, lobby, guestroom, amenity, technology, and operating upgrades would be required? |
| Franchise Economics | What are the franchise fees, reservation fees, loyalty fees, marketing fees, technology fees, and required reserves? |
| Distribution Value | Does the brand materially improve occupancy, ADR, RevPAR, group demand, extended-stay demand, or financing confidence? |
| Residential Compatibility | Can the brand support a residence, managed-residence, or mixed-use hospitality strategy? |
| Lender Acceptance | Does the brand help financing, underwriting, and long-term valuation? |
| Exit Flexibility | Does the brand improve long-term acquisition, recapitalization, refinance, or sale outcomes? |
Khan Hotels is intentionally not naming a specific third-party hotel brand at this stage. The repositioning strategy should remain flexible until the parties complete diligence, capital planning, brand conversations, legal review, and underwriting. The Atrium at 124 identity allows the property to be presented as a polished high-end hospitality platform without implying that any third-party brand has approved, licensed, or endorsed the project.
The presentation avoids premature brand claims and keeps the proposal credible.
Khan Hotels can compare multiple high-end brand pathways rather than appearing locked into one platform.
The selected brand should be the one that best supports economics, financing, renovation scope, and long-term acquisition strategy.
A larger execution opportunity than a single lease or sale transaction.
The Khan Hotels plan creates a broader role for the broker of record. The opportunity is not limited to introducing a master tenant or buyer. The proposed repositioning may create multiple future transaction lanes, including residential condominium sale execution, retail and commercial leasing, commercial-component sale, capital partner introductions, and future acquisition coordination.
The broker of record may participate in advancing the master lease, recapitalization, and 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 the future acquisition pathway, subject to final deal structure and separate agreements.
Khan Hotels views the broker of record as a potential strategic partner in the property's broader monetization plan. Subject to separate agreements, the broker may have opportunities to participate in residential condominium sales, retail and commercial leasing, commercial disposition, capital markets coordination, and the future acquisition pathway.
A layered approach designed to reduce upfront cash burden and support the future acquisition pathway.
Khan Hotels intends to evaluate a layered capital strategy that may include master lease economics, Year 1 rent abatement, sponsor and strategic capital, C-PACE financing, energy incentives, public incentive evaluation, residential component monetization, commercial component monetization, and future acquisition rights. The objective is to reduce out-of-pocket burden while preserving the resources needed to stabilize, improve, recapitalize, and ultimately acquire the asset.
The proposed structure includes full Year 1 rent abatement to create stabilization and transition runway.
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.
The café, medical office, and banking or private-client branch strategy may support commercial leasing, sale, financing, or recapitalization.
Purchase option, ROFR, ROFO, non-disturbance, and successor protections are intended to preserve the future acquisition pathway around the approximate $57M valuation framework.
No incentive, financing, C-PACE loan, public benefit, tax benefit, brand affiliation, sale, or monetization result is guaranteed. All items remain subject to diligence, legal review, lender approval, owner approval, market conditions, program eligibility, and final documentation.
A phased path from control to documentation, stabilization, recapitalization, and future acquisition.
Ownership and broker of record review the Khan Hotels proposal and strategic repositioning plan.
Parties begin negotiating the master lease, purchase option, ROFR, ROFO, non-disturbance, financing rights, and operational-control agreements.
Khan Hotels completes legal, condo, title, engineering, environmental, operational, financing, and capital-stack diligence.
Khan Hotels assumes operational control under the finalized structure and 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.
Khan Hotels would pursue acquisition of the property under the purchase rights and approximate $57M future acquisition framework, subject to final documentation and approvals.
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.
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.
Residential and commercial monetization targets are 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.
Common charges, CAM charges, and reserve contributions are intended for maintenance, repair, operations, replacement, and capital planning, not undisclosed sponsor profit.
Any recurring management, rental-management, administrative, parking, or shared-service fees must be legally structured, properly disclosed, and documented.
A clear path from proposal review to definitive documentation.
Khan Hotels is prepared to move the proposed framework into the next stage of discussion with ownership, the broker of record, counsel, lenders, and project advisors. The objective is to confirm alignment around the master lease, recapitalization strategy, operational-control rights, residential and commercial monetization plan, broker participation, and future acquisition pathway.
Ownership may confirm interest in advancing the proposed master lease, recapitalization, and phased acquisition framework.
The parties begin negotiating the master lease, purchase option, ROFR, ROFO, recognition agreements, non-disturbance protections, financing rights, and operational-control documents.
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 initial transaction, future residential condominium sale strategy, retail and commercial leasing, commercial disposition, and the future acquisition pathway, subject to separate brokerage agreements.
Ownership would be asked to reasonably cooperate with 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 definitive-documentation timeline and next deliverables.
What Khan Hotels is requesting from ownership.
The proposed framework creates a path to value preservation, improvement, and eventual monetization.
This is not a short-term operating lease. It is a long-term asset-control and acquisition framework designed around stabilization, capital improvement, and recapitalization.
Khan Hotels would assume property-wide operating responsibility and lead a full hospitality, residential, retail, parking, and common-area repositioning strategy.
Under the proposed NNN structure, Khan Hotels would be responsible for taxes, insurance, utilities, maintenance, repairs, staffing, operating expenses, regulatory compliance, and day-to-day operations.
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.
The purchase option, ROFR, ROFO, non-disturbance protections, and successor-owner protections are intended to align the parties around a long-term acquisition outcome.
The residential component may be independently structured, financed, marketed, and monetized to support capitalization, stabilization, and long-term asset value.
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 future participation opportunities across residential sellout, retail and commercial leasing, commercial sale, capital markets, and future acquisition 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, consent requirements, lender contacts, payoff information |
| Energy / LL97 | Benchmarking, energy bills, Local Law 97 exposure, prior audits, utility records |
Ownership and broker review the Khan Hotels presentation and confirm willingness to proceed.
Parties hold transaction call with ownership, broker, counsel, and Khan Hotels.
Ownership provides initial diligence materials and existing lender and consent information.
Counsel begins drafting master lease, purchase option, ROFR, ROFO, non-disturbance, and recognition agreements.
Khan Hotels advances 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 — a professionally managed hotel, residential, retail, medical, banking, and valet-parking platform. The proposed structure gives ownership a serious path to stabilization and eventual monetization, gives the broker of record expanded execution opportunities, and gives Khan Hotels the control needed to improve, recapitalize, operate, and ultimately acquire the asset.
Khan Hotels is prepared to move the proposed master lease, recapitalization, and phased acquisition framework into definitive documentation. Ownership may confirm interest in accepting the proposal framework in principle and proceeding to the next stage of legal, diligence, financing, and transaction review.
Acceptance of the proposal framework is intended only as an indication of interest to proceed. No lease, purchase option, ROFR, ROFO, sale, financing, 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 proposal framework toward diligence, counsel review, financing review, and definitive documentation.