3661 New York 23a , Palenville, NY 12463

The Arlington House Circa 1864As this nation was making its way out of the Civil War, tourists began discovering the beauty of the Catskill Mountains. The hamlet of Palenville, in the Town of Catskill, NY, is home to the countrys first art colony. The Hudson River School of painters helped lead that movement, introducing visitors to the magic of Upstate New York that continues to captivate today.The Arlington House has seen several different chapters throughout its history but has consistently operated as a boarding house, hotel, and residence since its inception. It is rumored that Mark Twain and his family spent the night here on their way to their legendary summer retreat in nearby Onteora Park.The current owner grew up in the home and benefited from the income generated by the rental apartments. After taking ownership, he completed a full gut renovation of the main house in 2011 and the apartment building in 2023. Improvements include all new drywall, insulation, plumbing, electrical systems, a new wraparound porch, roof, and box gutters.Following the renovation, the property was primarily operated as a successful short-term rental, hosting small weddings, group gatherings, and ski trips. The main house features five bedrooms, three bathrooms, a spacious open floor plan, and a formal parlor that is ideal for entertaining large groups. There is also a third-floor attic, originally used as living space, that has been gutted with plumbing and electrical already roughed in, offering an excellent opportunity to create additional finished living space. The separate apartment building includes three one-bedroom units. Two are fully completed, while the third is ready for finishing, with brand-new kitchen cabinets still in the boxes and onsite. An additional space has plumbing and electrical rough-ins already in place and could potentially be incorporated into the lower unit, converted into a laundry and storage area, or, with proper town approvals, developed into a fifth unit. This remarkable historic property offers stunning views of the mountains through Kaaterskill Clove and is surrounded by year-round recreational opportunities, including skiing, hiking, swimming in nearby creeks, Kaaterskill Falls, and North-South Lake. It is conveniently located just 10 minutes from the villages of Catskill and Saugerties and 20 minutes from Hudson, Amtrak, and Woodstock.Palenville is home to the Rip Van Winkle Golf Course, Circle W Market & Café, and The Griffin House, recently revitalized by the former management team of Tavern on the Green. The Griffin House has become a popular destination, offering a welcoming pub atmosphere along with seasonal festivals in its scenic outdoor space overlooking the creek. A bed and breakfast or boutique inn would be a wonderful addition to the community. The Arlington House offers exceptional flexibility, whether envisioned as a single-family residence with income-producing accessory units, a boutique hospitality venture, or a dedicated investment property. It has a proven history of strong rental performance, with financials available upon request. Call the listing agent to schedule a private showing. Advance notice is required, and the listing agent must accompany all appointments. Schedule your showing today.