Successful Sale of 920 Park Avenue in Carnegie Hill, Upper East Side, Manhattan
Bob Knakal successfully closed the sale of the multifamily elevator building located at 920 Park Avenue, at the northwest corner of 80th Street and Park Avenue in Manhattan’s prestigious Upper East Side.
The 21-story apartment building, with approximately 156,000 square feet and 68 residential units, was sold for $135 million. The building had been owned by the same family for over 60 years, and after decades of holding, they decided to sell the asset. Bob and his team helped navigate numerous challenges to secure a favorable outcome for the sellers.
Sale Details
The key to unlocking the building’s value was convincing potential buyers that the free market rents could be raised significantly, from around $90 per square foot to between $125 and $135 per square foot.
Bob and his team used a comparable property on 71st Street and Park Avenue to bolster their case, demonstrating the potential upside in rents.
Additionally, the vacant garage space was positioned as a prime opportunity to create new amenity space, a valuable feature that could enhance the building’s appeal to prospective tenants and increase the overall value of the property.
Through skillful marketing, Bob was able to generate significant interest in the building, leading to a bidding war between two buyers. Ultimately, the property was sold for $135 million, or nearly $2 million per unit, a remarkable achievement given the challenges.
Sale Price: $135,000,000
Seller: Confidential Family (926 PA Co.)
Buyer: Confidential
Seller Type: High-Net-Worth Family
Property Type: Multifamily Elevator Building
Sale Date: April 23, 2021
Property Details
The building at 920 Park Avenue is a 21-story elevator apartment building with approximately 156,000 square feet of residential space. The unit mix consists of 55 free market apartments and 13 rent-stabilized units, with an average unit size of 1,900 square feet.
This prime corner property offers an exceptional location in Carnegie Hill, one of the most desirable neighborhoods in New York City.
Full Address: 920 Park Avenue, New York, NY 10028
Zoning: Multifamily – Elevator
Property Type: Multifamily Residential
Square Footage: 156,000 square feet
Unit Count: 68 units (55 free market, 13 rent-stabilized)
The Challenge of Selling a 1960s-Era Building
Although 920 Park Avenue boasted an unbeatable location on Park Avenue, the sale of the building came with several challenges. The building was constructed in 1962 using white-glazed brick, a less desirable façade among New York City investors. Additionally, the building lacked modern amenities, had significant vacancy, and the garage tenant had gone into bankruptcy.
Furthermore, the June 2019 rent law changes meant that a condo conversion was no longer possible. These factors, along with a relatively low turnover due to the large unit sizes, made the sale more complex.
To maintain confidentiality, the tenants and staff were unaware that the building was for sale. Tours of the property were conducted discreetly, using the service stairwell and garage, minimizing the chance of alerting residents or staff. Moreover, a real estate broker living in the building added another layer of difficulty to keeping the sale under wraps.
Neighborhood Overview
- Carnegie Hill, on Manhattan’s Upper East Side, is renowned for:
- Luxury residences.
- Proximity to Central Park.
- Key appeal factors:
- One of the most sought-after areas for high-end real estate.
- Prestige associated with owning a Park Avenue address.
- 920 Park Avenue:
- Holds significant long-term value despite challenges.
- Attracts investors seeking:some text
- Potential for increased rents.
- Prestige of the location.
Conclusion
The sale of 920 Park Avenue highlights Bob Knakal’s ability to navigate complex sales processes and achieve outstanding results. By leveraging his deep understanding of the New York City multifamily market, Bob and his team were able to overcome the building’s challenges and secure a record-breaking sale price.
This transaction underscores the importance of market expertise, creative problem-solving, and strategic positioning in achieving success in the competitive Manhattan real estate market.
Testimonial
“Bob Knakal and John Hageman are the best of the best! They and their team helped the sellers of 920 Park navigate an uncertain market with their expertise, experience and unparalleled knowledge and understanding of the NYC multifamily market. Their ability to package, promote and shepherd the sales process from inception to closing is not only due to their skill and grasp of the market, but also their tremendous rolodex and tireless perseverance. They are available 24/7, make you feel as if you are their most important client, and have your back at all times. Because they work to protect your interests, every seller in the NYC multifamily property sector should not hesitate to make them their first call.”
– Officer of 926 PA Co., Seller of 920 Park Avenue
Learn More About Manhattan Real Estate Development
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