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Successful Sale of 1055 Park Avenue in Carnegie Hill, Upper East Side, Manhattan

Bob Knakal successfully closed the sale of the development site at 1055 Park Avenue, located on the southeast corner of 87th Street and Park Avenue in Manhattan’s prestigious Upper East Side. The five-story building on the site had 9,690 square feet of existing space, but the site’s zoning allowed for a new building of up to 19,551 square feet, which led to the sale price of $12 million to developer Trevor Davis. This deal exemplifies the importance of understanding the highest and best use of a property, which, in this case, was a development site.

Sale Details

Jim Nicholson decided to retain Bob Knakal to market the development site, and in a short period of time, they found a buyer in developer Trevor Davis, who paid $12 million for the property. The sale closed on October 14, 2005, marking a successful transaction that maximized the value of the site by recognizing its development potential.

Sale Price: $12,000,000
Seller: Jim Nicholson
Buyer: Trevor Davis
Seller Type: High-Net-Worth Investor
Property Type: Residential Condo Development Siter
Sale Date: October 14, 2005

‍Property Details

The property at 1055 Park Avenue was a five-story building with 9,690 square feet of existing space, but its prime location and zoning made it an ideal development opportunity. With a 19-foot-wide by 102.9-foot-deep lot and a floor-to-area ratio (FAR) of 10, the site could accommodate a new building with 19,551 buildable square feet, significantly increasing its value as a development site.

Full Address: 1055 Park Avenue, New York, NY 10028
Zoning: Development
Property Type: Development Site
Lot Size: 19’ x 102.9’
Existing Square Footage: 9,690 square feet
Buildable Square Footage: 19,551 square feet

The Key to Unlocking the Highest Value

Jim Nicholson, a long-time client of Bob Knakal, called in early 2004 to discuss whether to re-lease the retail space at 1055 Park Avenue or potentially sell the building. At the time, the retail lease was expiring, and Jim had the opportunity to raise the rent substantially by securing a new tenant. However, after conducting a detailed analysis of the property, Bob advised Jim not to proceed with the lease renewal, as selling the building with vacant retail for a user or, more importantly, as a development site would yield a much higher value.

Bob’s team recognized that all the residential tenants on the upper floors were free-market tenants, meaning the leases did not have to be renewed. With the site's prime location on a major avenue with high-density zoning, it became clear that the highest and best use for the property was as a development site. A new development on the site could command significantly more value than keeping the existing building with a new retail lease.

The investment value with a new lease was estimated to be around $7 million, while selling the property as a development site was projected to fetch much more, with estimates as high as $600 per buildable square foot.

Neighborhood Overview

Carnegie Hill, located on Manhattan’s Upper East Side, is one of the city’s most coveted neighborhoods, known for its luxury residences and prime real estate. Development sites in this area are highly desirable due to the limited availability of land and the potential to build high-end residential projects. The sale of 1055 Park Avenue reflects the continued demand for development opportunities in this area, where properties that can accommodate new construction are particularly valuable.

Conclusion

The sale of 1055 Park Avenue highlights the importance of identifying the highest and best use of a property in order to maximize its value. By understanding the site’s potential as a development opportunity, Bob Knakal and his team were able to secure a much higher price than if the building had been leased and sold as an income-producing asset. The $12 million sale to Trevor Davis represents a significant success, demonstrating Bob’s expertise in New York City’s development market.

Testimonial

“Bob Knakal does deals no one else can. Bob hit the ball out of the park for us at 1055 Park Avenue, pun intended.”
– Jim Nicholson, Bay Management

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