Successful Sale of 503-505 East 75th Street in Upper East Side, Manhattan
Bob Knakal successfully negotiated the $25,600,000 sale of a block-through development site at 503-505 East 75th Street. This portfolio, owned by Manhattan East Hotels, consisted of two factory buildings previously used for laundry services. The sale to Lycée Français de New York marked a pivotal achievement, overcoming complex zoning hurdles and political influence to secure an optimal buyer.
Sale Details
The property faced unique challenges, including restrictive zoning and political roadblocks that initially limited its development potential. Bob Knakal’s expertise in identifying high-value uses under existing zoning paved the way for a lucrative transaction.
- Sale Price: $25,600,000
- Seller: Manhattan East Hotels
- Buyer: Lycée Français de New York
- Seller Type: Hotel Operator
- Property Type: Development, Institutional, Portfolio
- Sale Date: February 8, 2001
Property Overview
Located on the Upper East Side, the site spanned 125 feet of frontage on East 75th Street and 150 feet on East 76th Street. While neighboring areas were zoned for high-density residential use, this site was restricted to low-density development, limiting its appeal for traditional residential projects.
- Full Address: 503-505 East 75th Street, New York, NY
- Zoning: Institutional/Community Facility
- Property Size: 148,000 square feet permitted for community use
The Challenge: Zoning Restrictions and Political Influence
The owners initially pursued a high-density residential variance but faced opposition due to political pressures. With no clear path for profitable residential development, they turned to Bob Knakal for innovative solutions.
Strategic Pivot:
Bob recommended targeting community facility users, such as schools or hospitals, which could maximize the site's potential under its current zoning. The Upper East Side’s high demand for institutional spaces made it an attractive opportunity for these users.
Market Strategy and Leverage
By focusing on educational institutions and hospitals, Bob's team generated significant interest. Lycée Français de New York, seeking to consolidate its operations into a modern facility, emerged as a prime candidate. A competitive bidding process with another school drove the sale price beyond expectations.
- Leverage: Identified optimal users and created competition among potential buyers.
- Result: Achieved a higher-than-expected sale price with favorable terms for the seller.
Neighborhood Overview
The Upper East Side is renowned for its proximity to cultural landmarks and top-tier schools. It continues to attract institutional buyers due to its:
- Prestigious reputation
- Central location near Manhattan’s core educational and medical institutions
- Opportunities for strategic development
Conclusion
The sale of 503-505 East 75th Street underscores Bob Knakal’s expertise in turning challenges into opportunities. By leveraging his market knowledge and strategic approach, he delivered a remarkable outcome for Manhattan East Hotels, securing a record price and transforming the site into a modern facility for Lycée Français de New York.
Testimonial
“Bob Knakal said he would find a user to purchase our development site, and he found two. The bidding war got us a price above our collective anticipation. Bob and his team did an outstanding job!”
– Dan Denihan, Manhattan East Hotels
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