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Successful Sale of 509 West 38th Street in Hudson Yards, Midtown West, Manhattan
Bob Knakal successfully closed the sale of the development site at 509 West 38th Street, located in the rapidly growing Hudson Yards neighborhood of Manhattan. The property, purchased by Meadow Partners and Iliad Realty, was sold for $49,800,000.
Dealing with the challenges of partnership dynamics in real estate takes an experienced broker who can find common ground, establish fair market value, and help everyone move forward smoothly.
Sale Details
The development site at 509 West 38th Street sold for $49,800,000 on December 20, 2013, following an intense marketing process that generated 24 offers. Iliad Realty, the minority partner, exercised their right of first refusal and matched the highest bid, ultimately purchasing the site for a price that exceeded earlier internal negotiations.
Sale Price: $49,800,000
Seller: Meadow Partners and Iliad Realty
Buyer: Iliad Realty
Seller Type: Real Estate Partnership
Property Type: Development Site
Sale Date: December 20, 2013
Property Details
509 West 38th Street was a 125' x 100' development site, initially used as an auto body repair shop with a large billboard that provided additional rental income. Both the lease for the shop and the billboard had expired, with tenants continuing on a month-to-month basis.
The property offered substantial development potential in the booming Hudson Yards neighborhood, making it a valuable asset for both residential and commercial development.
Full Address: 509 West 38th Street, New York, NY 10018
Zoning: Development
Property Type: Development Site
Buildable Square Footage: Approximately 125,000 square feet
Sale Price: $49,800,000
Partnership Conflict: When Partners Don’t See Eye-to-Eye
The site was originally purchased by a partnership between Meadow Partners and Iliad Realty, with Meadow holding the majority ownership. Iliad had a first right of refusal in the event of a sale. The original plan was to develop a residential rental building.
However, within a short period of time, the property’s value had increased significantly due to the neighborhood's growth, prompting a debate among the partners about what to do next.
Meadow Partners wanted to sell the site, while Iliad preferred to move forward with development. Unable to agree on a price during internal negotiations, the partners decided to retain Bob Knakal and his team to market the property, establish fair market value, and ultimately determine the best course of action.
Market Strategy and Results
Bob Knakal’s approach focused on generating maximum interest from potential buyers to push the property’s value to its highest possible level.
The team aggressively marketed the asset, producing 24 offers from qualified buyers. The highest offer was matched by Iliad Realty, the minority partner, under their right of first refusal, allowing Iliad to proceed with the purchase.
The final sale price was significantly higher than the initial buyout offer Iliad had proposed during their internal negotiations. Bob’s successful marketing process ensured that both partners received a fair and accurate valuation for the property, with the outcome benefiting all parties involved.
Neighborhood Overview
Hudson Yards and Midtown West are among Manhattan’s most active and valuable areas for new development.
Key development trends:
- High demand for mixed-use and residential projects.
- Significant appreciation in property values over recent years.
509 West 38th Street:
- Experienced substantial value growth in a short period.
- Proximity to the Hudson Yards redevelopment project increased its appeal.
- Potential for large-scale development made it a prime target for developers.
Conclusion
The sale of 509 West 38th Street demonstrates Bob Knakal’s expertise in managing partnership dynamics and maximizing value through a competitive marketing process.
By generating 24 offers and pushing the price higher than initially anticipated, Bob and his team ensured that both partners received a fair deal.
This deal highlights just how important it is to have an experienced broker on your side, especially when partners have different goals to balance in a complex real estate transaction.
Testimonial
“We were unclear as to whether we were going to sell or recapitalize and restructure our partnership. To decide which direction we were going to go in, we needed to determine the fair market value of our site. Bob and his team described the marketing process that they would use to maximize the exposure of our property to get it to the largest possible audience of buyers. Within a short period of time, we had a number of qualified buyers bidding on the property. Bob came through for us just as he said he would. We highly recommend Bob and his team.”
– Jeff Kaplan, Meadow Partners
Learn More About Manhattan Real Estate Development
Explore more of our remarkable deals in our exclusive online magazine featuring Hudson Yards and surrounding areas in Success Stories. Discover how we consistently maximize value and sale prices for our clients across New York City's most desirable neighborhoods, including 507-511 West 33rd Street in Hudson Yards, Midtown West, Manhattan.
