Former Hotel Sterling site listed for sale at $1.2 million

The former Hotel Sterling site at the corner of North River and West Market streets in Wilkes-Barre is listed for sale at $1.2 million.

A new hotel project that had been planned for the vacant lot was switched to property on nearby Public Square instead, leaving the fate of the Sterling parcel up in the air, officials announced in May.

Hysni Syla, principal of Sterling lot owner H&N Investments LLC, could not immediately be reached for comment Tuesday, but has said he would attempt to bring “something very good for the city” to the location.

Stephen Barrouk, who is involved in the current sale process as a licensed real estate broker, said Tuesday that several parties have expressed an interest in the tract to date. His son, Greg, is handling the listing through Lewith & Freeman Real Estate Inc.

“It is still a prime property,” Barrouk said of the Sterling parcel, which is visible to those entering the city from the Market Street Bridge. “We’re hoping something positive can occur there.”

The listing describes the site as a “prime development location in the heart of downtown Wilkes-Barre” and a “great high-profile, high-traffic location.”

Regarding the future Sterling site plans, Barrouk said Syla won’t be entertaining development of gas stations and convenience stores.

“That would ruin it, especially as you’re coming over the Market Street Bridge,” he said, referring to the stretch of historic structures still standing.

He’d like to see a multistory building with residential units on the upper floors and a mix of commercial spaces on the ground floor, possibly including a grocery store.

Barrouk had served as project representative when the hotel plans were under development at the Sterling site and views the property as unfinished business.

“I need to get that done for the community,” Barrouk said. “It’s been a nagging problem since the 1990s, and it would be good to put that site to rest once and for all.”

The once-premiere hotel deteriorated to the point that the structure was evacuated and closed in 1998, according to prior reporting. The nonprofit CityVest was brought in to turn around the property, but the public learned in 2011 that CityVest was out of funds and couldn’t fulfill its mission of attracting a developer to renovate the former hotel into a premier residential and retail complex. The structure was condemned and demolished in 2013.

CityVest was unable to repay a $6 million Luzerne County community development loan largely used to make the parcel larger, pay a consultant, tear down an attached hotel structure and remove hazardous material. Critics had questioned that approach, saying the funds should have been invested on roof repairs and mothballing to stop leaks and prevent further deterioration.

H&N purchased the 2.1-acre Sterling property from the city for $600,000 in 2018.

The $1.2 million asking price covers two of the three parcels totaling 1.2 acres fronting North River and West Market streets, according to the listing.

Barrouk said Syla may seek city approval to convert the remaining lot along South Franklin Street into a paid commercial parking lot.

H&N had allowed free public parking at the cleared Sterling site for years, but recently ended that practice due to liability concerns, Barrouk said.

Syla also concluded those parking for free were taking up spots needed for his customers and tenants, Barrouk said.

Syla’s company, 126 S. 45th Street LLC, owns the former bank building and post office on the opposite side of West Market Street that houses residential units and the Diamond City Vault Bar & Grill. Parking at the Sterling lot is now reserved for tenants and customers at that property and patrons of the Cafe Toscana on Public Square, Barrouk said.

“Others run the risk of getting towed,” Barrouk said.