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Successful Sale of 2-33 50th Avenue in Long Island City, Queens
Bob Knakal successfully closed the sale of a 76,000-square-foot development site at 2-33 50th Avenue in Long Island City, Queens. The property, with 444,000 buildable square feet, sold for $88,000,000.
This transaction highlights Bob's ability to navigate complex zoning challenges and market conditions to secure an optimal outcome for the seller, even in difficult circumstances like the Amazon HQ2 reversal and the onset of the COVID-19 pandemic.
Sale Details
The sale of 2-33 50th Avenue closed on September 20, 2021, for $88,000,000. The transaction was a testament to Bob Knakal’s perseverance and expertise, helping the seller navigate zoning challenges and market volatility to achieve a record-breaking sale price.
Sale Price: $88,000,000
Seller: Confidential
Buyer: Confidential
Seller Type: Out-of-town private owner
Property Type: Development Site
Sale Date: September 20, 2021
Property Details
The development site at 2-33 50th Avenue offered 76,000 square feet of land and 444,000 buildable square feet. The property was located just one block from the 7 train and the East River, providing breathtaking views of Manhattan.
However, the site posed a significant challenge as a subway tunnel ran under a portion of the property, restricting its development potential and requiring a zoning variance from the Board of Standards and Appeals (BSA).
Full Address: 2-33 50th Avenue, Long Island City, NY
Zoning: Development
Property Type: Development Site
Buildable Square Footage: 444,000 square feet
Sale Price: $88,000,000
The Challenge: Zoning Variance and Subway Tunnel
The key obstacle in this transaction was the subway tunnel beneath a portion of the site, which limited the area that could be economically developed. This created a situation where the full Zoning Floor Area could not be massed under the existing height restrictions.
To maximize the value of the site, the seller needed to obtain a zoning variance from the BSA, a challenging process in New York City.
Bob’s deep relationships with BSA personnel and his knowledge of land-use attorneys who specialized in these cases were instrumental in securing the exclusive listing for this project.
Bob and his team provided the seller with crucial insights into what the BSA would be looking for and recommended the best attorney to present the case for the variance. This insider knowledge and strategic planning allowed the seller to move forward confidently.
Strategic Marketing During a Difficult Market
Bob implemented a comprehensive marketing strategy, focusing on the unique characteristics of the property: its prime location and its potential for rezoning.
Despite the challenge of the subway tunnel, the site’s proximity to transportation and its spectacular Manhattan views made it highly desirable. The key was convincing buyers that the zoning variance could be obtained, unlocking the site’s full potential.
However, the market conditions were far from ideal. Shortly after going to market, Amazon announced plans to establish a major headquarters just three blocks from the site, which initially generated significant interest from buyers. But when Amazon abruptly pulled out of Long Island City, coupled with the onset of the COVID-19 pandemic in early 2020, the market became exceptionally difficult.
Despite these setbacks, Bob remained persistent, bringing in buyers and navigating the uncertainties with resilience. His ability to regroup and restart the marketing process multiple times ultimately led to a successful outcome.
Record-Breaking Sale
After overcoming numerous challenges, including the Amazon HQ2 withdrawal and the pandemic, Bob secured a third buyer who purchased the property for $88,000,000.
This sale set a record price per square foot of land area, underscoring Bob’s ability to maximize value even in the toughest market conditions.
Neighborhood Overview
Long Island City is one of New York’s most dynamic development markets.
Factors driving interest:
- Proximity to Manhattan.
- Excellent transportation options.
Challenges overcome:
- Amazon HQ2 withdrawal.
- Impact of the COVID-19 pandemic.
Sale of 2-33 50th Avenue:
- Highlights the resilience of the Long Island City real estate market.
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- Careful marketing.
- Creative problem-solving.
- Strong understanding of zoning regulations.
- Prime development sites in the area continue to attract top-tier buyers.
Conclusion
The sale of 2-33 50th Avenue is a prime example of how Bob Knakal's market expertise and deep relationships within the real estate community can make all the difference, especially in challenging times.
By focusing on the property’s unique characteristics and leveraging his insider knowledge of the BSA process, Bob was able to secure a record-breaking sale price for the seller.
His persistence and ability to overcome setbacks like the Amazon HQ2 fallout and the pandemic highlight why he is one of the most sought-after brokers in New York City.
Testimonial
Here is what the seller had to say about the transaction:
“Our site had two major, but opposing characteristics: a) it benefitted from having arguably the best remaining location in Long Island City, only a block from the 7 train, and a block from the East River with fabulous views of Manhattan; and b) it was challenged because a section of the property was directly above the 7 train tunnel. You helped us meet the best land-use lawyer in New York to help us navigate the complex issues involved with the subway, with the potential of obtaining a variance, and the various ways to market our property with maximum effect.
No one could imagine the extremely difficult market conditions that ensued right after we signed our agreement with you. Yet, despite all the adversity, you never wavered. The third time was a charm. Remarkably, during a long and complex negotiating process, you were still able to attract a buyer to pay a record price per square foot of land area. New clients should know how good you are in the toughest of times, which informs them of how good you really are.”
– Seller, MD Brumin, LLC
Learn More About Long Island City Real Estate Development
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