The Palms Hotel, a luxury boutique hotel in Ocean Beach on Fire Island, is on the market for $14 million.
The sale includes a total of seven buildings, says Abigail Medvin Mago of Fire Island Sales & Rentals, who is listing the hotel with Alan Medvin.
"It’s basically spread out over five blocks in Ocean Beach," says Mago.
Forty of the 43 guest rooms are located in the "owned" properties. The Palms Hotel main building on Cottage Walk has 20 guest rooms; the Palms Bungalows on Bungalow Walk has 13 bungalows; and the Palms Bay on Bay Walk has six rooms and one suite.
The sale also includes the lease on CJ’s Restaurant & Bar at 479 Bay Ave., a Fire Island institution, notes Mago. The other leased properties are the presidential suite, which is in the space above Flair House boutique, and two guest suites at the Palms Bay East at 937 Bay Walk.
"Basically, they’re stepping into the shoes of the current ownership," says Mago. "So, anything that they lease, they would get the rights to that lease. And anything that they own, they would own as the new owner."
In the 15-plus years that sellers Chris and Laura Mercogliano have operated the Palms, they’ve assembled the parcels, renovated them and created the largest luxury hotel complex in Ocean Beach.
"The Palms really set a new standard for accommodations on Fire Island," says Mago. "They put a lot of capital into improvements, bringing them up to modern standards."
To date, the Palms has operated seasonally, but Mago believes there is a high demand to extend the season to earlier in the spring and later in the fall.
"It’s a very interesting opportunity to come and capitalize on Fire Island’s ascendance into a really popular and sought-after destination," says Mago.
The annual property taxes for the parcel are $96,337.
Flood insurance for the four owned properties is an estimated $22,532.