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Successful Sale of 501 & 511 West 35th Street in Hudson Yards, Midtown West, Manhattan
Bob Knakal successfully facilitated the sale of the development sites at 501 and 511 West 35th Street in the booming Hudson Yards neighborhood of Manhattan.
The transaction involved Alloy Development, which sold the prime site, and Eliot Spitzer, who emerged as the successful bidder.
The sale, totaling $128,000,000, showcases the fast-growing land market in Hudson Yards and the impact of key bonus programs available through the area’s rezoning initiatives.
Sale Details
The development sites at 501 and 511 West 35th Street were sold for a combined total of $128,000,000, with the leasehold on 501 West 35th Street selling for $40,000,000 and 511 West 35th Street selling for $88,000,000.
This transaction showcases the importance of timing, market awareness, and collaboration among developers in a rapidly changing neighborhood like Hudson Yards.
Sale Price: $128,000,000 (combined)
Seller: Alloy Development, Jorge Madruga (Leasehold)
Buyer: Eliot Spitzer
Seller Type: Developer (Alloy Development), Leaseholder (Jorge Madruga)
Property Type: Development Site
Sale Date: April 24, 2014
Property Details
The combined development sites at 501 and 511 West 35th Street offered exceptional potential for large-scale development.
With 75 feet of frontage on 35th Street and 100 feet of frontage on 36th Street, the properties were part of the Hudson Yards rezoning area, offering a total buildable square footage of 414,750 square feet.
Given the size and location, the properties were highly attractive to developers seeking opportunities in this rapidly evolving neighborhood.
Full Address: 501 & 511 West 35th Street, New York, NY 10018
Zoning: Development
Property Type: Development Site
Buildable Square Footage: 414,750 square feet
Sale Price: $128,000,000 for both sales
Four Home Runs & a Strikeout: The Story of the Sale
Alloy Development originally acquired the site at 511 West 35th Street as part of their broader strategy in Hudson Yards.
By 2013, the land market in the area was booming, and they realized they could potentially make almost as much money by selling the site as they would by developing it, without the associated risks. As a result, they decided to market the property.
Bob Knakal and his team quickly attracted interest from top developers across New York City.
A key part of the marketing strategy involved presenting the benefits of the Eastern Rail Yards Bonus program and the District Improvement Bonus program, which had been implemented to raise funds for the Hudson Boulevard Park project. Eliot Spitzer, who had not been active in purchasing Manhattan properties for many years, seized the opportunity and emerged as the winning bidder.
He purchased the site for $88 million, marking a significant win for Alloy Development.
The Adjacent Property Opportunity
As soon as the contract with Eliot Spitzer was signed for the 511 West 35th Street site, Bob received a call from Jorge Madruga, a prominent developer with extensive experience in Hudson Yards. Jorge had just signed a long-term ground lease for the adjacent property at 501 West 35th Street, and he wanted to know more about the site next door.
Bob explained that the adjacent property had already been contracted, but the owner of 501 West 35th Street had not returned multiple calls when Bob had previously reached out about the site.
As a result, the owner missed the chance to capitalize on the rising market prices. In contrast, Jorge and Eliot quickly made a deal to sell the leasehold on 501 West 35th Street to Eliot for $40 million.
The result? A home run for Jorge, a home run for Eliot, and a strikeout for the owner of 501 West 35th Street, who missed a prime opportunity by not engaging with brokers at the right time.
Neighborhood Overview
Hudson Yards remains one of Manhattan's most sought-after neighborhoods for new development.
Factors driving developer interest:
- Rezoning initiatives.
- Significant infrastructure investments.
- Incentives like the Eastern Rail Yards Bonus and District Improvement Bonus programs.
Sale of 501 and 511 West 35th Street:
- Highlights the demand for prime development sites.
- Emphasizes the importance of seizing opportunities in this competitive market.
Conclusion
The sale of 501 and 511 West 35th Street demonstrates Bob Knakal’s ability to navigate complex, high-stakes deals in one of New York City’s most competitive real estate markets.
By successfully marketing the site to top developers and leveraging key bonus programs, Bob and his team were able to secure a record-breaking sale price for Alloy Development.
This transaction also highlights the importance of timing, market knowledge, and engaging with the right partners at the right time.
Testimonial
Here is what Alloy Development and Jorge Madruga had to say:
“Bob Knakal and his team executed flawlessly on the sale of 511 West 35th Street, maximizing the value of the site for us. Their knowledge of the market and the bonus programs in Hudson Yards made a huge difference in securing the right buyer and the best possible price. We highly recommend Bob and his team for any development site in New York City.”
– Jorge Madruga
Learn More About Manhattan Real Estate Development
Explore more of our remarkable deals in our exclusive online magazine featuring Hudson Yards and surrounding area Development Site Sales. Discover how we consistently maximize value and sale prices for our clients across New York City's most desirable neighborhoods, including 435 Tenth Avenue in Hudson Yards, Midtown West, Manhattan.
