Successful Sale of 140, 152-154 West 24th Street in Chelsea, Manhattan
Bob Knakal successfully closed the sale of a prime development site located at 140, 152-154 West 24th Street in the Chelsea neighborhood of Manhattan. The site, which had been assembled over several years by Gary Barnett of Extell Development, was sold for $76,000,000. The deal involved complex zoning challenges and the strategic acquisition of adjacent parcels and development rights, demonstrating the importance of deep market knowledge and creative problem-solving.
Sale Details
The development site was sold for $76,000,000 to hotel developer Sam Chang, who planned to utilize the site for a hotel development. The deal was finalized on October 30, 2017, marking another successful transaction facilitated by Bob Knakal and his team.
Sale Price: $76,000,000
Seller: Extell Development (Gary Barnett)
Buyer: Sam Chang
Seller Type: Prominent Real Estate Developer
Property Type: Development Site
Sale Date: October 30, 2017
Property Details
The development site at 140, 152-154 West 24th Street consisted of multiple parcels strategically assembled by Extell Development over the years. The properties were not contiguous due to an outparcel that was “overbuilt” and could not be efficiently incorporated into the development. Additionally, Gary Barnett had acquired the rights to an ornate retail space on 23rd Street via a long-term master lease, which was intended to serve as the lobby for the building to be constructed on 24th Street.
Full Address: 140, 152-154 West 24th Street, New York, NY 10011
Zoning: Commercial
Property Type: Development Site
Sale Price: $76,000,000
Zoning and Assembly Challenges
As is common in New York City, the development site was the result of a land assembly process, where multiple adjacent parcels and air rights were purchased. However, the non-contiguous nature of the parcels presented a significant challenge. An outparcel between the assembled properties was “overbuilt,” meaning its building exceeded the allowable density per current zoning regulations. This created difficulties in transferring unused air rights to the main site at 140 West 24th Street, as the outparcel would have needed to absorb the excess air rights, which was not cost-effective.
The tricky zoning also meant that residential development was not an option, as commercial use was the only permissible development. The floor plates of the smaller properties at 152-154 West 24th Street were too small for office use, making hotel development the most efficient use of the site.
Market Strategy and Buyer Targeting
Bob Knakal and his team strategically targeted Sam Chang, a prominent hotel developer, as the buyer. Having sold over a dozen sites to him, they knew he would be the ideal candidate to take advantage of the site’s zoning and development potential. The property received about 30 offers, and Sam Chang ultimately secured the site for $76,000,000.
The complex zoning challenges required an intimate understanding of the intricacies of New York City’s zoning code. Bob and his team successfully navigated these issues, leveraging their expertise to attract the right buyer and maximize the value of the site.
Neighborhood Overview
Chelsea, located in Manhattan’s west side, is a vibrant and dynamic neighborhood known for its art galleries, restaurants, and hotels. The neighborhood has seen significant growth in recent years, making it a prime location for new developments. With commercial zoning allowing for hotel development, the site at 140, 152-154 West 24th Street was particularly attractive to developers looking to capitalize on the area’s strong demand for hospitality space.
Conclusion
The sale of 140, 152-154 West 24th Street in Chelsea highlights Bob Knakal’s ability to navigate complex land assembly and zoning challenges to deliver outstanding results. By understanding the intricacies of New York City’s zoning code and leveraging his deep relationships with buyers, Bob was able to secure a successful outcome for Extell Development. The sale is another example of how market expertise, creativity, and perseverance can overcome even the most challenging real estate transactions.
Testimonial
“Our development site on 24th Street had a number of twists and turns and, once again, Bob Knakal and his team came through for us with flying colors. Understanding the intricacies of the zoning code is something not many brokers can claim, but Bob gets it and knows the code as well as developers do. This was another job well done by Bob and his team on our behalf.”
– Dov Hertz, Extell Development
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