A Queens, N.Y.-based hotel developer has spent $6.75 million to buy a small midtown Manhattan parcel that’s ripe for hotel development. McSam Hotel Corp., which bought the 5,025 sq. ft. site from the Riese Organization, has the right to build a seven-story hotel property on the site.

“In a city that lacks an adequate number of affordable nightly hotel rooms, in part due to the conversion of hotels to condominiums, hotel investment is now certainly a favored asset class,” says Alan Miller, a director at investment sales brokerage Eastern Consolidated. Eastern Consolidated represented the seller, Riese Organization, in the deal.