Prime development site at 14–16 East 39th Street in Midtown Manhattan's Grand Central Business District, featuring the Hyatt Centric Hotel. Ideal for investors seeking a premier location with excellent potential.
Property Highlights - Development Site Cost and Details for The Hyatt Centric Hotel In Midtown at 14 – 16 East 39th Street, NYC
The transaction originated from a $198 million sale of a portfolio of four office buildings, with one investor group acquiring properties at 9 East 38th Street and 14 East 39th Street. We successfully marketed and sold the 39th Street site to hotel developer Sam Chang for $32 million, leading to the development of a Hyatt-branded hotel, and received commendation from ClearRock Properties for our strategic approach.
- Development Site Transaction: This transaction stemmed from a larger deal involving the sale of a portfolio of 4 office buildings for $198 million to two investor groups.
- Location and Property Details: One investor group acquired properties at 9 East 38th Street (a 12-story office building with narrow frontage on 39th Street) and 14 East 39th Street (a 25’ wide, 3-story commercial building). Site is located between Fifth and Madison Avenue.
- Development Opportunity: The 39th Street properties offered potential for development, with air rights allowing a larger building. Combining and demolishing both buildings could create a 50’ wide site with 65,000 buildable square feet.
- Dual Marketing Strategy: ClearRock Properties approached us about selling the properties. We suggested marketing both the entire property and the development site separately to reduce costs and maximize options.
- Successful Sale: We subdivided the 38th Street property and sold the 39th Street site to hotel developer Sam Chang for $32 million. He built a Hyatt-branded hotel on the site.
- Seller Testimonial: Steven Grant of ClearRock Properties praised our multidimensional strategy and effective marketing, recommending our services to other potential sellers in NYC.
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About the Hyatt Centric Hotel Development Site Location
The Hyatt Centric Hotel in Midtown, located at 14 – 16 East 39th Street, is conveniently surrounded by landmarks such as Bryant Park, Grand Central Terminal, the Empire State Building, the New York Public Library, and Times Square, all within easy walking distance. Guests can enjoy access to cultural attractions, dining, and shopping in one of Manhattan's vibrant neighborhoods.
The Hyatt Centric Hotel Development Full Story by Bob Knakal
This transaction was an offshoot of a much larger transaction. We had sold a portfolio of 4 office buildings for $198 million in a transaction that was purchased by two investor groups that teamed up. One of those groups ended up with ownership of two assets at 9 East 38th Street and 14 East 39th Street.
9 East 38th Street was a 12-story block-through office building with 47.5’ of frontage on 38th Street and 25’ of frontage on 39th Street. Also on the 39th Street frontage was a three-story, 25’ wide commercial building. The layout of the office building was a bit cumbersome, with just a narrow strip on the 39th Street frontage. The fact that 14 East 39th Street was just 25’ wide and three stories presented the owners with additional “air rights,” which would allow a larger building to be constructed on the site.
When we were selling the four-property portfolio originally, we pitched the 39th Street frontage as a development opportunity. This would necessitate subdividing the 39th Street wing of the 38th Street property off of that building and combining it with the smaller building on 39th Street, demolishing both buildings and creating a 50’ wide development site on which a new building of 65,000 buildable square feet could be constructed.
When the owner of the two assets on 38th & 39th Streets, ClearRock Properties, approached us about potentially selling the property, we suggested both properties be sold, or just the to-be-created 39th Street development site, the idea being to bring down the cost basis of a to-remain building on 38th Street and to hold onto that property. We were able to convince the seller that we could go down two paths simultaneously: a sale of the entire property or just the development site. The seller retained us to market both opportunities simultaneously. A subdivision of the 38th Street property was effectuated, and we sold the 39th Street properties to one of my favorite buyers, Sam Chang, the hotel developer, for about $32 million. Sam has built a Hyatt-branded hotel on the 39th Street site.
Steven Grant of ClearRock Properties Praises Bob Knakal's Multidimensional Marketing Strategy
Here is what the seller had to say:
“Given the complexities of our situation, we needed a broker who could strategize and implement a marketing program in a multidimensional way. Bob Knakal and his team were the perfect choice for this assignment. They were able to move down two different, but parallel, paths simultaneously and provided us with many options to consider. We were extremely pleased with our results and would gladly recommend Bob and his team to any other potential sellers in New York City.” - Steven Grant, ClearRock Properties
Learn More
Discover the stories behind our most remarkable deals. Dive into our exclusive online magazine to explore these Development Site Sales and see how we maximize value and the sale price for our clients. You can also read about the testimonial of the 10-Story Commercial Loft Building at 10 East 34th Street in Midtown East.
