90-unit condo-hotel planned at former Westbury TGI Friday's

A high-end "condotel" planned for Westbury would target baby boomers as potential residents who want to rent out their homes while they are away for winters in Florida or elsewhere.

The Beechwood Organization is seeking to build the development, which would have 90 condo units, at the site of the former TGI Friday’s restaurant at 829 Merrick Ave., said Michael Dubb, founder and chief executive officer of Beechwood, a Jericho-based developer of single-family and multifamily housing.

In a condotel, residents own their condos in a building that functions as a hotel, with owners being allowed to rent out their homes temporarily when they are not residing there.

"The owner gets to pass on the carrying costs for a home they don't use in the winter, or other time of year, by renting it like a long-stay hotel room. While they are away, they also don't have the worry of their home’s upkeep or the logistics of managing a rental. We do it for them," Dubb said in an email.

Condotels typically offer hotel-like amenities.

The Westbury development would offer "resort-style living," with a swimming pool, gym, library, card room, club room and concierge service, Dubb said.

Beechwood would manage the "rental pool," which is the inventory of condos available for rent for a set period of time, and oversee requests for rentals as hotel staff would, he said.

Duration limits on the rentals have not been established yet, he said.

Condo owners would not be required to rent out their homes, he said.

There would not be age restrictions for residents, but Beechwood expects 80% to 90% of the condo owners to be baby boomers, he said. Baby boomers are people who were born between 1946 and 1964, according to the U.S. Census Bureau.

The Westbury condo buyers would be "empty nesters who no longer need or want to live in single-family homes and are more mobile than empty nesters of the past. They go back and forth from Florida, visit children and grandchildren in other states, or travel to enjoy their golden years," Dubb said.

The condotel would have one- to three-bedroom units on four floors in an approximately 160,000-square-foot development, he said.

Earlier this year, Beechwood submitted building plans for the project to the Town of Hempstead, which has not made a decision yet on approval.

The TGI Friday’s restaurant in Westbury closed in October 2024. Beechwood bought the 3-acre property for $12.75 million last year.

It’s too early to say how much the condos would sell for or the estimated cost of redeveloping the Westbury site, said Dubb, adding that the proposed condotel does not have a formal name yet.

Beechwood hopes to break ground on the project in 2027, with the first residences becoming available in 2028, he said.

Appeal of rental income

At least one condotel exists on Long Island, Montauk Manor, in the Hamptons.

Beechwood has one existing condotel upstate in Saratoga Springs, the Adelphi Hotel and Residences. The project was completed last year, and its 79 condos are sold out, said Dubb, who added that the success of that project inspired Beechwood to bring the concept to Long Island.

Condotels tend to be concentrated in vacation destinations and appeal to buyers seeking second homes that can generate rental income for them, Chen Zhao, head of economics research at Seattle-based real estate brokerage website Redfin, said in an email.

Among the benefits for owners are having the opportunity to earn rental income when they are not living in the units, using professional management services that handle bookings and housekeeping, and having access to hotel-like amenities, such as pools, restaurants and concierge services, she said.

For renters, the advantages are the amenities, as well as condotels having more space and residential features, such as kitchens and living rooms, than standard hotels do, she said. 

There can be drawbacks for owners, she said.

"Financing can be more difficult because many lenders have stricter requirements for condotels," Zhao said.

Also, homeowners’ association dues, management fees and revenue-sharing arrangements can reduce profitability, she said.

Building with a focus on Eisenhower Park

Beechwood’s proposed Westbury condotel is one of several projects the developer plans to build — or has built — on Merrick Avenue, near Eisenhower Park.

"We ... believe that Eisenhower Park is one of the most beautiful parts of Nassau County. Our vision is to develop this part of Merrick Avenue to leverage the views of the park as opposed to the single-story retail space that has traditionally dotted much of Merrick Avenue and from which very little of the park can be seen," Dubb said.

In 2022, Beechwood completed a $125 million luxury development, The Selby, with 210 apartments and 27 hotel rooms at 695 Merrick Ave. In 2017, Beechwood paid $16 million for that 5.87-acre property, where a Syms Clothing/Filene’s Basement store closed in 2011.

In 2021, Beechwood paid $4 million for a 1.22-acre property at 725 Merrick Ave., where a Houlihan’s restaurant closed in 2019. Beechwood renovated the building, which is being leased to The Farm Italy Restaurant that opened last September. 

By Tory N. Parrish

tory.parrish@newsday.comToryParrish1

Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.