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Explore the successful $81 million sale of a prime Turtle Bay development site at 131-141 East 47th Street. Discover how Gary Barnett's expert land assembly and Bob Knakal's market insights led to this landmark NYC real estate transaction in this vibrant Midtown East neighborhood.
Midtown East: A Prime Manhattan Location
Midtown East, home to 131-141 East 47th Street, is a coveted neighborhood in the heart of Manhattan, New York City. This bustling district offers:
- Proximity to the Plaza District, a hub for international business
- Easy access to major transportation hubs like Grand Central Terminal
- A mix of commercial, residential, and mixed-use properties
- High foot traffic and visibility for businesses
- Attractive location for both domestic and international investors
The area's strategic location and diverse property portfolio make it a prime target for real estate development and investment.
Transit Hub: Unparalleled Connectivity
Here are the nearby public transportation stations for 131-141 East 47th Street:
- Grand Central Terminal: 2-3 blocks west, serving 4, 5, 6, 7, and S subway lines, and Metro-North trains.
- 51st Street Station: About 3 blocks north, serving the 6 and E subway lines.
- Lexington Avenue/53rd Street Station: Approximately 4 blocks north, serving the E and M subway lines.
The Challenge: Assembling Land in a Competitive Market
Gary Barnett of Extell, renowned as one of New York City's best land assemblers, faced the challenge of consolidating multiple properties to create a valuable development site in Midtown East.
Site Details
- Location: North side of East 47th Street between Lexington and Third Avenues
- Components: Four parcels, including a parking garage and three adjacent properties
- Ownership: Multiple owners, each presenting unique negotiation challenges
Strategic Real Estate Actions in Midtown East
- Acquired a portfolio of parking properties, including the main component of the site
- Successfully negotiated with three separate owners to acquire adjacent properties
- Recognized the potential value of the assembled site to foreign developers
- Partnered with Bob Knakal and his team to market the property internationally
- Capitalized on the surge of foreign institutional capital in New York City real estate
Market Insight: Timing the Foreign Investment Boom
- Period: Early 2015
- Market Condition: Surge in foreign institutional capital in NYC real estate
- Notable Trend: 2015-2016 saw 3x more foreign capital deployed in NYC than any other two-year period before or since
Impressive Results: From Local Assembly to International Sale
- Sale Price: $81 million
- Buyer: Bentley Zhao, a Chinese developer
- Site Composition: Four-parcel assemblage
- Strategy: Targeted marketing to foreign developers
- Outcome: Successful sale of the assembled site to an international buyer
Client Testimonial: Gary Barnett, Extell
"Given the proximity of our site to the core midtown Plaza District, we suspected that a foreign based developer would be the most likely buyer. Based upon this, we felt that Bob Knakal, and his team, would be able to access this segment of the market. This, along with his extensive track record selling development sites in New York City, made Bob an easy choice for the assignment. As expected, Bob was able to identify a foreign developer to purchase our site. We are very pleased with the results and recommend Bob to other sellers of development sites in New York City."
Key Players in the Transaction
- Seller: Gary Barnett, Extell
- Broker: Bob Knakal and his team
- Buyer: Bentley Zhao, Chinese developer
Key Takeaways from this Midtown East Real Estate Success Story
- Expertise in land assembly is crucial for creating valuable development sites in Manhattan
- Understanding market trends, such as foreign investment surges, can significantly impact sale strategies
- Partnerships with experienced brokers who have international connections are vital for accessing global buyers
- Midtown East's proximity to the Plaza District makes it attractive to foreign developers
- Persistence and negotiation skills are essential when dealing with multiple property owners in land assembly
Full Development Story: 131-141 East 47th Street, NYC
The Best Land Assembler in NYC
It is hard to argue that Gary Barnett of Extell is not the best assembler of land in New York City today and has been for the past 30 years. We have been lucky enough to have had a great relationship with Gary over that period of time and have closed over 20 transactions with him, on both the buying and selling sides.
This site was located on the north side of East 47th Street between Lexington and Third Avenues. The main component of this four-parcel site was a parking garage structure, which was purchased as part of a portfolio of parking properties that Gary purchased. In order to enlarge the site, the three adjacent properties to the east needed to be acquired. These properties were owned by three separate owners, each of whom was difficult to interact with. Kudos to Gary and his team for being able to acquire all three of them.
With the site assembled, he decided to sell the site. Given our mutual agreement that a foreign developer would be the best potential buyer for the site given what was happening in the market at the time. This was early in 2015 and was at the point when foreign institutional capital was surging in New York City. In fact, 2015 and 2016 saw more foreign capital deployed in NYC than in any other two-year period, before or since, by a multiple of 3x!
Our efforts focused on developers from outside the US and, sure enough, we found a Chinese developer, Bentley Zhao, to purchase the site.
Learn More About Manhattan Real Estate Development
Explore more of our remarkable deals in our exclusive online magazine featuring Midtown East Development Site Sales. Discover how we consistently maximize value and sale prices for our clients across New York City's most desirable neighborhoods, including 145-147 East 47th Street Midtown East, Manhattan.
