Successful Sale of 435 Tenth Avenue in Hudson Yards, Midtown West, Manhattan
Bob Knakal and his team at Massey Knakal successfully closed the sale of the development site at 435 Tenth Avenue, located at the northwest corner of 34th Street and Tenth Avenue in Manhattan’s rapidly growing Hudson Yards neighborhood.
The site, owned by Rosenthal & Rosenthal, was sold for a staggering $238,000,000. This transaction is one of the best real estate deals of all time, transforming a $4 million foreclosure into a high-value sale thanks to Hudson Yards’ ambitious rezoning and creative marketing strategies by Bob and his team.
Sale Details
The sale of 435 Tenth Avenue closed on April 29, 2014, for $238,000,000.
The site’s dramatic increase in value from a $4 million foreclosure to a multi-million dollar sale decades later highlights the importance of strategic timing, marketing, and market knowledge in large-scale real estate transactions.
Sale Price: $238,000,000
Seller: Rosenthal & Rosenthal (Peter Rosenthal)
Buyer: Tishman Speyer (Rob Speyer)
Seller Type: Private Owner (Financial Institution)
Property Type: Development Site
Sale Date: April 29, 2014
Property Details
The property at 435 Tenth Avenue was an enormous development site by New York standards, with 100 feet of frontage on 34th Street, 175 feet of frontage on Tenth Avenue, and 325 feet of frontage on 35th Street.
The irregularly shaped lot spanned nearly one acre and had been a parking lot for decades.
Following the Hudson Yards rezoning, the site had the potential for 1,265,000 buildable square feet, making it an extremely attractive opportunity for developers looking to capitalize on the area’s explosive growth.
Full Address: 435 Tenth Avenue, New York, NY 10001
Zoning: Development
Property Type: Development Site
Buildable Square Footage: 1,265,000 square feet
Sale Price: $238,000,000
The Spire, The Speyer, or The Spiral?
The story of 435 Tenth Avenue goes back to the early 1980s, when Hudson Yards was considered a “wasteland” filled with industrial buildings, large parking lots, and a few nightclubs. At the time, buildings in the area sold for as little as $30 to $50 per square foot.
In the midst of this, Rosenthal & Rosenthal, a factoring company in the Garment District, made a $4 million mortgage loan on the parking lot at 435 Tenth Avenue. After the owner defaulted on the loan, Rosenthal & Rosenthal took title to the property.
Fast forward to the 2000s, and Hudson Yards was undergoing one of the most ambitious rezonings in New York City history.
By mid-2013, the value of the land had skyrocketed, and Rosenthal & Rosenthal decided it was time to sell. With the parking lot lease expiring, they retained Bob Knakal and his team to handle the sale.
The Strategy: Competing with Global Firms
Given the site’s size and location, Bob Knakal and James Nelson knew they would face stiff competition from global brokerage firms eager to secure the listing. Their strategy was simple but powerful: convince the sellers that the large firms had a conflict of interest. While the commission on the sale would be around $2 million, the leasing commissions for the building could generate tens of millions of dollars.
The global firms, Bob argued, would push for a buyer who would retain them for the leasing and management of the building, whereas Bob’s team, without such an interest, would focus solely on achieving the best sale price.
The strategy worked, and the sellers agreed to retain Bob Knakal exclusively.
Marketing the Site: “The Spire” Becomes “The Speyer”
Bob’s team created an extraordinary marketing package, branding the development opportunity as “The Spire,” with a conceptual design featuring 20-foot ceiling heights that would make it the tallest building in North America. The package was sent to buyers all over the world, garnering global attention.
Recognizing that Rob Speyer of Tishman Speyer was a logical buyer for this mega-site, Bob sent a hardbound copy of the marketing package directly to Rob, with the title “The Spire” crossed out and replaced with “The Speyer.” This clever move, along with Bob’s relentless negotiations, helped close the deal. Rob Speyer purchased the site for $238 million, and the building under construction on the site today is called “The Spiral.”
Neighborhood Overview
Hudson Yards, once an industrial area, is now one of Manhattan's most desirable neighborhoods for large-scale development projects.
Key factors in Hudson Yards' transformation:
- Rezoning allowed significant increases in buildable square footage.
- Attracted major developers from around the world.
Sale of 435 Tenth Avenue:
- Sold for $238 million.
- Highlights the area's shift to a premier destination for commercial, residential, and mixed-use developments.
Marketing of the site:
- Branded as "The Spire."
- Demonstrates the importance of creative branding and global outreach in successful transactions.
Conclusion
The sale of 435 Tenth Avenue is one of the most impressive real estate deals in recent history. Bob Knakal and his team were able to secure a record-breaking sale price through their strategic marketing, deep understanding of the market, and ability to position the property as the most significant development opportunity in Hudson Yards.
This transaction demonstrates Bob’s ability to navigate complex deals and maximize value for his clients, even in highly competitive markets.
Testimonial
Here is what Peter Rosenthal of Rosenthal & Rosenthal had to say about the sale:
"Bob Knakal and his sales team achieved a pricing level which was above and beyond our expectations. They secured worldwide attention by positioning this as the most significant development opportunity in the entire marketplace. Their creative approach led to a great result for us and a smooth and successful closing."
– Peter Rosenthal, Rosenthal & Rosenthal
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