Successful Sale of 351 East 61st Street in Lenox Hill, Upper East Side, Manhattan
The development site at 351 East 61st Street, a 50-foot-wide, five-story factory building just north of the 59th Street Bridge, was sold for $5,700,000.
For many years, Bob Knakal had tried to reach the owner, Richard Reitman, about the possibility of selling the property, but despite numerous attempts—calls, letters, and even personal visits—Richard remained largely uninterested in the real estate market.
The building was located in a unique C8-zoned area, a throwback to the "old days" when the zoning allowed industrial uses, such as slaughterhouses. 351 East 61st Street, with its industrial history, was one of the few remaining buildings of this type in the neighborhood, making it a valuable asset as development interests in the area increased.
A large-scale proposed development spanning First Avenue to York Avenue, between 60th and 61st Streets, had many neighborhood owners excited about potential zoning changes that could impact the area’s future.
Sale Details
Sale Price: $5,700,000
Original Contract Price: $3,800,000
Seller: Richard Reitman
Buyer (Original Contract who flipped the deal): Gerry Musano
Buyer (Final): Trevor Davis
Sale Date: November 24,1998
Property Details
The property at 351 East 61st Street was a 50-foot-wide, five-story industrial building, strategically located just north of the 59th Street Bridge in the Lenox Hill area of Manhattan’s Upper East Side.
The C8 zoning allowed for unique commercial and industrial uses, making it an attractive opportunity for commercial and development interests in the evolving neighborhood.
Full Address: 351 East 61st Street, New York, NY 10065
Zoning: C8
Property Type: Industrial/Commercial, Development Potential
Missed Opportunity for the Seller
After years of attempting to contact Richard Reitman, Bob Knakal finally reached him by phone, only to find out that Reitman had already signed a contract to sell the building privately for $3.8 million.
Despite having multiple interested parties, Reitman had chosen to forgo working with a broker, believing he didn’t need one given the interest in the property.
Two days later, Bob Knakal received a call from his client, Gerry Musano, who had signed the contract to buy the building for $3.8 million. Gerry felt he had purchased the building at an excellent price and asked Bob if he could help flip the contract to another buyer.
Flipping the Contract and Maximizing Value
Bob Knakal successfully flipped the contract to developer Trevor Davis, who was planning to develop the site into an assisted living facility. Trevor paid Gerry Musano $1.9 million for the contract, bringing the total sale price to $5.7 million—$1.9 million more than the original contract price.
Had Reitman used a broker with deep market insight, he could have secured the additional $1.9 million for himself, instead of leaving it on the table. This transaction serves as a clear example that, while having multiple interested buyers is valuable, it does not necessarily guarantee that a seller will maximize the sale price.
Neighborhood Overview
In the late 1990s, Lenox Hill and the Upper East Side experienced growing interest in development opportunities.
Factors driving interest:
- Zoning changes reshaping the area.
- New developments boosting demand.
351 East 61st Street:
- Unique zoning and industrial history offered significant redevelopment potential.
- Highlighted the importance of working with a knowledgeable broker.
- Ensured property values were fully realized, even in a competitive market.
Conclusion
The sale of 351 East 61st Street is a reminder that relying on interest from buyers alone does not necessarily lead to the highest sale price.
Bob Knakal’s involvement in flipping the contract showcased the value of having a broker with deep market knowledge and negotiation skills.
The seller, Richard Reitman, could have netted an additional $1.9 million had he chosen to involve an experienced broker from the outset.
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