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Successful Sale of the Iconic RKO Theatre Development Site in Flushing, Queens
Bob Knakal and his team successfully closed the sale of the development site at 135-35 Northern Boulevard, home to the historic RKO Keith’s Theatre. The site, which had been idle for over 30 years, was sold for $65,775,000 to a large foreign developer. This transaction highlights Bob’s expertise in overcoming significant challenges, including landmark preservation, community board approvals, and a complex marketing environment, to secure a highly competitive price for the seller, JK Equities.
Sale Details
The sale of 135-35 Northern Boulevard closed on July 30, 2016, for $65,775,000. The comprehensive marketing campaign, combined with the readiness of the site and the seller’s ability to overcome numerous development hurdles, ensured a highly competitive sale price.
Sale Price: $65,775,000
Seller: JK Equities
Buyer: Foreign Developer
Seller Type: Private Developer
Property Type: Development Site (Historic Landmark)
Sale Date: July 30, 2016
Property Details
The development site at 135-35 Northern Boulevard was once the RKO Keith’s Theatre, a renowned cinema palace in Flushing, Queens. Although the theater had closed its doors in 1986, it remained a prominent neighborhood fixture despite its derelict state. The property spanned a large lot and had development potential, but its landmarked lobby and other zoning complications made it a challenging site to sell. JK Equities had acquired the property in 2013 and spent years working through approvals to prepare it for development.
Full Address: 135-35 Northern Boulevard, Flushing, Queens, NY
Zoning: Development
Property Type: Development Site (Former RKO Keith’s Theatre)
Sale Price: $65,775,000
The Challenge: Landmark Status, Community Approval, and More
The RKO Keith’s Theatre had faced a number of challenges, from community board approval to feng shui concerns and the negative stigma of being an eyesore for decades. Furthermore, a portion of the theater’s lobby was designated as a landmark, which limited development options.
After acquiring the property, JK Equities worked extensively with various agencies to reduce the landmarked interior space and achieve other crucial approvals. This included obtaining FAA approval to raise the building’s height and securing the coveted 421a tax abatement program, which incentivizes development. With these approvals in place, JK Equities decided to sell the property rather than take on the construction risks themselves, realizing that the after-tax profit on a sale was equivalent to the profit they would have earned from completing the development.
Strategic Marketing: Targeting the Right Buyers
Bob Knakal and his team were selected to market the property due to their deep knowledge of the local market and the complexities surrounding the RKO Theatre. The marketing campaign focused on local developers as well as foreign investors, particularly given the site’s shovel-ready nature and its desirable location in Flushing, a hub for international buyers.
At a time when construction costs were high and financing was scarce, Bob’s team strategically positioned the site as an immediate development opportunity with many of the critical upfront approvals already in place. This approach generated significant interest, and a large foreign developer with strong ties to the local condominium market ultimately acquired the property with plans to start construction immediately.
Neighborhood Overview
Flushing, Queens, has long been a key target for real estate development, particularly among international buyers. Its proximity to transportation hubs and a growing population make it an attractive area for both residential and commercial development. The sale of the RKO Keith’s Theatre site highlights the ongoing demand for shovel-ready development sites in this area, even in the face of complex zoning and landmark preservation issues.
Conclusion
The sale of 135-35 Northern Boulevard exemplifies Bob Knakal’s ability to navigate complex development challenges and market a property to the right buyers. His team’s efforts to highlight the site’s unique characteristics and overcome hurdles like landmark preservation and community approval led to a highly successful outcome. This transaction reflects Bob’s expertise in securing top prices for difficult-to-sell properties.
Testimonial
Here is what the seller had to say about the transaction:
"Bob and his team orchestrated an extraordinarily broad marketing program across the globe. Our site, while exceptionally well-located, had some challenges given the landmarked status of a portion of the old RKO Theater. Bob Knakal, Jon Hageman, and their team understood our asset and the neighborhood and were able to overcome any hurdles that came up throughout their marketing campaign. Our property was widely exposed to a wide array of potential buyers and brokers, resulting in a sales price that we were very pleased with. If you are selling a property, I would highly recommend Bob, Jon, and their team.”
– JK Equities
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