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Successful Sale of 846-850 Avenue of the Americas and 1227 Broadway in Chelsea and NoMad, Manhattan
Bob Knakal successfully closed the sale of a complex development site located at 846-850 Avenue of the Americas and 1227 Broadway, situated between Chelsea and NoMad. The uniquely shaped, triangular property spanned the length of West 30th Street between Avenue of the Americas and Broadway. The site, split-zoned across two different zoning districts, sold for $36,808,610. The sale was particularly challenging due to differing opinions among the property’s two owners, but Bob’s expert handling ensured both partners' goals were met.
Sale Details
The development site sold for $36,808,610 in a deal that successfully satisfied both owners, thanks to Bob Knakal’s innovative structuring. The property’s complex zoning, shape, and differing ownership opinions required a delicate balance of negotiation and strategy, but the outcome was a significant success for all parties involved.
Sale Price: $36,808,610
Seller: Pater Associates (Howard Waxman and partner)
Buyer: Developer (Confidential)
Seller Type: High-Net-Worth Investors
Property Type: Development Site
Sale Date: July 11,2014
Property Details
The development site consisted of a narrow triangular property with only 15 feet of frontage on Broadway and 68 feet on Avenue of the Americas. It included a small four-story building on Broadway, a one-story retail building on Avenue of the Americas, and a parking lot in between. The site had approximately 85,000 buildable square feet, making it a prime development opportunity despite its unusual shape and split zoning.
Full Address: 846-850 Avenue of the Americas / 1227 Broadway, New York, NY 10001
Zoning: Mixed-use, Split-Zoned
Property Type: Development Site
Buildable Square Footage: 85,000 square feet
Sale Price: $36,808,610
Overcoming the Challenges: Two Partners with Different Goals
The sale of this site presented several challenges. One of the partners was eager to sell, while the other was reluctant to part with the property. Additionally, the triangular shape of the site, with its limited 15 feet of Broadway frontage, made it difficult to maximize development potential. Building a new structure with such minimal frontage on Broadway posed a challenge, and the split zoning across two different districts further complicated the development process.
Structuring a Solution: Maximizing Value for Both Partners
Bob Knakal’s team devised a solution to satisfy both partners. They recommended subdividing the property so that the narrow Broadway frontage could be sold separately to the buyer of the adjacent blockfront, leaving a prime development site on Avenue of the Americas with 68 feet of frontage. The subdivision allowed the Broadway portion to be sold while leaving a significant development opportunity on Avenue of the Americas.
Once the Broadway portion was sold, the partners continued to disagree on whether to sell the Avenue of the Americas frontage. Bob and his team structured a deal that allowed both partners to achieve their objectives. They marketed the site as a development opportunity, received multiple offers, and identified a top prospect. A deal was then negotiated where the developer/buyer bought into the partnership entity that owned the property.
The partner who wanted to sell was able to cash out, while the other partner remained in the deal. After the building was completed, the partner who stayed had his interest converted into a fee simple interest in the two-story retail condo in the new building—an arrangement that provided a risk-free, tax-free exchange. This creative structuring allowed both partners to walk away satisfied, with their financial goals fully met.
Market Analysis
Chelsea and NoMad have become two of Manhattan’s most sought-after neighborhoods for both residential and commercial development. The area’s blend of historic buildings, cutting-edge developments, and proximity to key transportation hubs makes it a prime location for developers. The 846-850 Avenue of the Americas site’s proximity to these vibrant areas, combined with its development potential, ensured strong interest from the market despite its challenges.
Conclusion
The sale of 846-850 Avenue of the Americas and 1227 Broadway showcases Bob Knakal’s ability to navigate complex real estate transactions involving divergent ownership interests and challenging development conditions. His ability to structure creative solutions and ensure both partners’ objectives were met resulted in a highly successful sale for $36,808,610. This transaction demonstrates the importance of experience, market knowledge, and negotiation skills in overcoming obstacles to deliver outstanding results.
Testimonial
“Our partnership group did not always agree. Bob Knakal perfectly shepherded us through a very complex deal which we could not have done without him.”
– Howard Waxman, Pater Associates
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