Balsam House Hotel On Friends Lake 477 Atateka Dr 33 Room Hotel Chestertown, NY 12817 $3,950,000 ($119,697/Room)

Historic Adirondack Waterfront Hotel Redevelopment Opportunity
33-Key Full-Service Boutique Hotel | Fully Entitled | Waterfront Rights | Adirondack Mountains, New York
Positioned in the heart of the Adirondacks with direct access and riparian rights to private Friends Lake, this historic hospitality asset presents a rare opportunity to acquire and reposition a landmark destination property through a phased renovation and redevelopment strategy. Located in one of states largest park areas of more than 6 million acres. Conveniently located 20 mins from Gore Mountain Ski Center with year around sporting events, and close to golf courses and equestrian center.
Originally established in the 1800s and once known as the “Jewel of the Adirondacks,” the property consists of an existing 33-room full-service hotel structure with substantial infrastructure already in place. Following a prior fire event, the primary building shell remains substantially intact with a newer roof already completed, allowing investors to focus capital primarily on interior renovation and operational buildout rather than costly ground-up construction.
The revised business strategy allows for a phased renovation approach, enabling ownership to renovate and reopen the existing 33-room hotel first while preserving significant long-term expansion and redevelopment potential under the included redevelopment plans. This approach substantially reduces initial capital exposure while allowing future development to occur over time as operations stabilize and revenues grow.
The existing structure was originally designed to support full-service hospitality operations and accommodates restaurant and bar facilities, wellness amenities, spa components, and event space within the current footprint. The property also offers ample on-site parking to support hotel operations, restaurant/bar use, destination events, wellness programming, and future expansion phases.
Investment Highlights
Historic 33-room full-service hotel
Direct waterfront access with riparian rights to Friends Lake
Existing building shell substantially intact
Newer roof already completed
Fully entitled redevelopment opportunity
Ability to execute phased renovation and expansion strategy
Existing structure designed for restaurant, bar, spa, wellness, and event operations
Strong municipality support for reopening and redevelopment
Ample on-site parking
Includes long-term redevelopment and expansion plans
Located within the Chestertown Enterprise Zone
Potential eligibility for:
USDA Business & Industry Guaranteed Loan Program
Historic preservation tax credits
Local economic development incentives
Tourism and occupancy tax incentive programs
Buyer to independently verify all incentives
Valuation & Feasibility
Ownership has obtained:
Commercial appraisal valuing the property at approximately $5,770,000
HVS Feasibility Study supporting projected ADRs of approximately $350/night
The property is currently valued at approximately $180/SF in its existing condition, including land value. Estimated renovation and buildout costs are projected at approximately $350/SF depending on final design, scope, and finish level.
Development Status
The property is fully entitled. Upon submission of final construction plans and permits, the project is positioned to commence redevelopment. Local municipalities have expressed strong support for restoration of the hotel as an important hospitality and tourism asset within the region.
Long-Term Vision
The offering includes a comprehensive redevelopment plan for investors seeking to create a premier Adirondack boutique hotel, wellness retreat, and destination resort over time.
Future phases may include expanded guest accommodations, luxury cabins, enhanced wellness facilities, spa experiences, event venues, curated outdoor programming, and luxury nature-based hospitality experiences designed to capitalize on the continued growth of experiential travel and wellness tourism.
Constructed with reclaimed timber and natural stone, the envisioned design blends naturally into the surrounding mountain landscape while preserving the historic character and authenticity of the original property.
Offering Materials
Available in Document Section:
Commercial Appraisal
HVS Feasibility Study
Municipality Letters of Support
Redevelopment Plans & Concept Materials