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Successful Sale of the Kew Gardens Hills Portfolio in Queens
Bob Knakal successfully orchestrated the $216,000,000 sale of the Kew Gardens Hills Portfolio—one of the largest multifamily walk-up transactions in Queens history. The portfolio included 53 garden-style walk-up buildings spread across 24.6 acres, comprising a total of 1,269 residential units.
Though the sellers were experienced investors, they faced several complexities. The portfolio's wood-frame construction, deferred maintenance, and fragmented value from smaller individual buildings posed marketing and valuation challenges. By executing a strategic marketing plan and identifying hidden value, Bob was able to position the offering for maximum investor interest and achieve a premium sale.
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Sale Details
The Kew Gardens Hills Portfolio closed on September 8, 2014, for $216,000,000. The buildings totaled approximately 1,029,255 square feet, with a price per square foot of $209.86. The transaction attracted intense market interest, with over 230 executed confidentiality agreements and 37 formal offers submitted.
Bob’s strategic direction—including architectural consultation and deferred maintenance planning—resulted in identifying air-rights potential that became central to the winning offer. This insight allowed the eventual buyer, A&E Real Estate, to justify and support the record-setting price.
- Sale Price: $216,000,000
- Buyer: A&E Real Estate
- Seller: Pinnacle New York (Joel Weiner)
- Seller Type: Institutional Portfolio Holder
- Asset Class: Multifamily – Walk-Up, Portfolio
- Units: 1,269
- Total SF: 1,029,255
- Price per SF: $209.86
- Buildings: 53
- Date Closed: September 8, 2014
- Key Address: 147-07 72nd Road, Kew Gardens Hills, Queens, NY
Property Details
The Kew Gardens Hills Portfolio consisted of 53 garden-style walk-up buildings scattered throughout the neighborhood. These low-rise properties were situated on a combined 24.6 acres and featured traditional wood-frame construction. While the buildings weren’t new, they offered immediate upside in rental income and potential air-rights utilization.
- Building Style: Garden-Style Walk-Ups
- Construction: Wood Frame
- Lot Coverage: 24.6 Acres
- Total Units: 1,269
- Excess Air-Rights: Identified with Architectural Analysis
Strategic Approach to Overcome Challenges
From the start, the sellers faced three key challenges:
- Smaller buildings that individually lacked market dominance
- Wood construction, which often raises investor concerns
- Untapped air-rights with unclear development potential
To address these, Bob Knakal led a multi-step strategy:
- Advised hiring an architect to assess where air-rights could be used effectively
- Commissioned a market study to demonstrate upside in achievable rents
- Encouraged the preparation of a deferred maintenance schedule to give prospective buyers confidence in the long-term stability of the buildings
These efforts paid off when multiple buyers competed aggressively for the portfolio. The winning bidder saw clear value in the previously overlooked air-rights potential—justifying a bid that surpassed all others.
Neighborhood Overview
Kew Gardens Hills is a residential neighborhood in central Queens, well known for its suburban feel and access to key city infrastructure:
- Close to major thoroughfares like the Van Wyck Expressway and Grand Central Parkway
- Served by multiple bus lines and near E/F subway service
- Proximity to Flushing Meadows-Corona Park and Queens College
- Popular with long-term residents and families seeking quiet, stable neighborhoods
- Low building turnover and high demand for rental housing
Conclusion
The sale of the Kew Gardens Hills Portfolio stands as a case study in uncovering hidden value in complex assets. Bob Knakal’s market expertise, strategic planning, and hands-on guidance led to a sale price that exceeded expectations and set a new benchmark for multifamily portfolios in Queens.
Testimonial
“Bob Knakal is always our choice when we want to go broadly to the market. He has the ability to extract the last dollar from the market and positions the assets in its best possible light to maximize the price. I highly recommend Bob and his team to anyone who wants to get top dollar for their property.”
— Joel Weiner, Pinnacle New York
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