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Successful Sale of The Collective Paper Factory in Long Island City, Queens
Bob Knakal successfully arranged the $34,750,000 sale of The Collective Paper Factory, a 125-unit, five-story former hotel located at 37-06 36th Street in Long Island City, Queens. This high-profile transaction reflects the ongoing shift in demand for adaptive reuse properties and underscores the buyer’s interest in mission-driven repositioning.
Ed DiTolla and Bob Knakal led the deal on behalf of the seller, SPR Group LLC, delivering strategic insight throughout the process. The Collective, backed by Deutsche Bank, acquired the property with plans to convert the former boutique hotel into a shelter for unhoused individuals—marking a pivotal repositioning within the hospitality space.
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Sale Details
This off-market transaction closed on August 8, 2023, at a total consideration of $34,750,000, reflecting a price per buildable square foot (BSF) of $433.29. The seller, SPR Group LLC, is a private real estate firm, while the buyer—The Collective, in partnership with Deutsche Bank—plans to adaptively reuse the property to address the city's ongoing shelter needs.
Key Sale Highlights:
- Sale Price: $34,750,000
- Price Per SF/BSF: $433.29
- Buyer: The Collective, Deutsche Bank
- Seller: SPR Group LLC (Bank)
- Property Type: Hotel to Shelter Conversion
- Closing Date: August 8, 2023
- Units: 125
Property Details
The Collective Paper Factory is located at 37-06 36th Street, near the intersection of 36th Street and 37th Avenue, in the highly accessible Dutch Kills section of Long Island City—a rapidly transforming submarket in western Queens. The neighborhood’s proximity to Manhattan and robust infrastructure make it ideal for transitional housing and long-term investment.
Full Address: The Collective Paper Factory, 37-06 36th Street, Long Island City, NY 11101
Zoning: M1-3/R6A (MX) — Mixed-use zoning supports hotel, commercial, and residential use (no historic district designation).
Key Investment Highlights:
- Lot Size: 20,000 SF | Building Size: 80,200 SF across five stories
- Year Built: Originally constructed in the early 20th century; renovated and repositioned as a hotel in 2014
- Stories: 5
- Units: 125 guest rooms with boutique hotel layouts
- Special Features: Elevator access, modern industrial aesthetic, exposed brick interiors
Market Strategy and Positioning
Long Island City continues to be a dynamic and versatile submarket, offering flexible zoning, strong transportation links, and a blend of residential and commercial uses. The area has seen a shift in demand from traditional hospitality to community-driven and municipal-supported housing solutions.
This sale illustrates how investors are pivoting toward value-add and mission-based repositioning strategies. The building’s modern finishes and oversized lot made it an ideal candidate for adaptive reuse—especially amid reduced demand for boutique hotel stays post-pandemic and increased need for supportive housing.
Neighborhood Overview: Dutch Kills, Long Island City
Dutch Kills in Long Island City offers a rare balance of urban accessibility and neighborhood character. The area is known for its industrial charm, cultural institutions, and quick access to Midtown Manhattan.
Neighborhood Highlights:
- Two subway stops from Manhattan via the E, M, and R trains
- Proximity to MoMA PS1 and Kaufman Astoria Studios
- Nearby attractions include Dutch Kills Green, Court Square, and SculptureCenter
- Rich industrial architecture blended with new residential and cultural developments
Conclusion
The sale of The Collective Paper Factory reflects a broader trend in New York City’s real estate market: a shift from traditional hospitality toward socially conscious reuse. With its ideal location, solid infrastructure, and adaptable layout, the property presents a prime opportunity to address urgent housing needs while preserving neighborhood character.
This transaction highlights Bob Knakal’s ability to guide complex, mission-driven sales with strategic clarity and results-oriented execution. Through consistent engagement and deep market knowledge, the team at BKREA was able to facilitate a meaningful transaction that benefits both the buyer and the greater community.
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Frequently Asked Questions
Q1: What is the new use planned for The Collective Paper Factory?
The property will be converted from a boutique hotel into a homeless shelter, providing transitional housing and support services.
Q2: How large is the property?
The building spans approximately 80,200 square feet on a 20,000-square-foot lot, across five stories.
Q3: Where is the property located?
The Collective Paper Factory is located at 37-06 36th Street in the Dutch Kills section of Long Island City, Queens—just two subway stops from Midtown Manhattan.
