Successful Sale of 117 West 79th Street in the Upper West Side, Manhattan
Bob Knakal and his team orchestrated the sale of 117 West 79th Street, a striking pre-war elevator building situated in the highly sought-after Upper West Side Historic District. Despite multiple challenges, including zoning restrictions, regulatory hurdles, and the presence of original SRO tenants, Bob and his team navigated the complexities to secure an all-cash buyer willing to assume the risks associated with the property.
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Sale Details
The transaction closed on June 30, 2016, for $22,250,000. The sale process required extensive outreach to a broad network of investors to find a buyer willing to move forward despite the challenges presented by the property’s regulatory issues.
- Sale Price: $22,250,000
- Property Type: Multifamily - Elevator, SRO
- Building SF: 32,172
- Price per SF: $691.60
- Units: 108
- Date Closed: June 30, 2016
Property Overview
117 West 79th Street is a pre-war, architecturally distinctive elevator building located in a prime Upper West Side location. Originally operating as a transient hotel, the property was subject to non-conforming use regulations within its R10A residential zoning district. The New York City Department of Buildings had ceased operations at the site due to compliance issues, and ownership had been unable to secure the Certificate of Non-Harassment (CONH), a requirement for amending the Certificate of Occupancy.
Challenges Overcome
- Zoning Issues: The building’s previous use as a transient hotel conflicted with its residential zoning designation.
- Certificate of Non-Harassment: The inability to obtain this certificate made redevelopment uncertain and posed a substantial financial risk.
- Historic District Restrictions: Located within the Upper West Side Historic District, any exterior modifications required approval from the Landmarks Preservation Commission.
- Tenant Complications: Two original SRO tenants remained in place, further complicating potential redevelopment.
Market Strategy and Execution
To overcome these challenges, Bob and his team implemented a multi-faceted marketing strategy:
- Targeted Outreach: Engaged a database of 15,000 active New York City investors.
- Broker Collaboration: Partnered with other residential and commercial brokerage firms to widen the buyer pool.
- Competitive Bidding: Positioned non-contingent, all-cash offers in a competitive bidding process.
Results
The targeted marketing efforts led to:
- 75 confidentiality agreements signed.
- 35 property tours conducted.
- 17 competitive offers from qualified investors.
- A closing secured within just 30 days.
Neighborhood Overview
- Prime Upper West Side location.
- Near cultural landmarks such as the American Museum of Natural History and Central Park.
- Historic district designation adds prestige and long-term value.
- High demand for multifamily properties in the area.
Conclusion
The successful sale of 117 West 79th Street highlights Bob Knakal’s expertise in navigating complex regulatory challenges while maximizing property value. Through strategic marketing and negotiation, Bob and his team secured a favorable outcome in a competitive market, demonstrating the importance of persistence and a deep understanding of New York City’s multifamily investment landscape.
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