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Property Highlights: Development Site Cost and Details for 200 East 59th Street
The site at 59th Street and Third Avenue in Manhattan sold quickly after Harry Macklowe offered $100 million, with the condition that the contract be signed before the holiday ended. Bob Knakal and his team effectively managed the sale, closing the transaction within 60 days and receiving high praise from client Andrew Davidoff.
- Quick Deal: The site at 59th Street and Third Avenue moved swiftly from listing to closing.
- Unified Sale: Emmes and SL Green combined their properties, increasing the site's value as a development site.
- High Offer: Previously, a $93 million contract was in place, but sellers were unsatisfied with the slow-moving developer.
- Harry's Contingency: Harry Macklowe offered $100 million with the condition that the contract be signed before the holiday ended.
- Fast Closing: The contract was signed on holiday Monday, and the transaction closed within 60 days.
- Client Praise: Andrew Davidoff of Emmes Asset Management praised Bob Knakal for his successful and efficient handling of the transaction.
About the 200 East 59th Street Location
The area around 200 East 59th Street is a vibrant intersection of luxury and convenience, offering easy access to Central Park, world-class shopping on Madison and Fifth Avenues, and a variety of fine dining options. Notably, it's also just steps away from the iconic Bloomingdale's flagship store, adding to the neighborhood's allure for shoppers and residents alike.
200 East 59th Street Development Full Story by Bob Knakal
Sometimes deals move slowly and sometimes they move fast. The site at the southeast corner of 59th Street and Third Avenue was one of the quickest sales! The two corner buildings were owned by Emmes while the two interior buildings were owned by SL Green. It was determined that the combination of the four assets was worth more as a development site than the individual pieces were worth. To their credit, the owners agreed on a sharing arrangement to divide the sale proceeds and we went to the market with a unified position. Many owners have tried unsuccessfully to do this.
Prior to retaining my team to sell this site, the owners had a contract out to a developer at $93 million but that developer was moving like a glacier and the sellers grew impatient. When they called, we quickly turned around our valuation and, before knowing the level at which they had a contract out, told them we were highly confident that “a price in the mid to high $90s is very possible”.
We launched the marketing program on a Thursday before a long holiday weekend. I immediately received a call from Harry Macklowe, a very active developer in NY who is a good friend and has been a client for decades. He is also one of my favorite people in the industry (if you ever speak to him, ask him to tell you a joke!). Harry said to me, “Bob, I love the site and have the equity ready to go. I am going to make a great bid but have one contingency”.
Normally, we do not give post-contract-execution contingencies so I was expecting Harry to ask me for a due diligence period so he could have more time to study the site. Much to my surprise, he said, “Most people have already left the city for the long holiday weekend. I will offer $100 million but my contingency is that I get a contract tomorrow and that the seller’s attorney work with my attorney throughout the weekend. I want the contract signed before everyone else gets back from the holiday.”
Normally, the seller never takes the first offer but it was higher than the $93 million contract that was out previously and Harry was willing to put up a $10 million non-refundable deposit. We signed the contract on that holiday Monday and the transaction closed 60 days later.
Andrew Davidoff Commends Bobby Knakal for Outstanding Service
Here is what my good friend and client Andrew Davidoff, Chairman & CEO of Emmes Asset Management Company had to say:
“ Bobby Knakal and his team have been a valued advisor to our firm for decades. He presented a plan that we thought was very ambitious but, in his usual way, exceeded our expectations across the board. Bob was the perfect choice for us on this transaction. We value our relationship with him and his team and would happily recommend him to anyone looking to sell an asset in New York City.”
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