Successful Sale of 606 West 30th Street in Hudson Yards, Midtown West, Manhattan
Bob Knakal successfully closed the sale of the development site at 606 West 30th Street, located in the heart of Manhattan’s fast-growing Hudson Yards district.
The property, formerly home to the NYC Department of Sanitation, sold for $36,000,000.
Despite the site’s challenging zoning restrictions, Bob and his team managed to secure a record price for the seller, MD Brumin, LLC, by strategically focusing on the potential for upzoning and the site’s unique development possibilities.
Sale Details
The sale of 606 West 30th Street closed on August 17, 2015, for $36,000,000. The record-breaking price was achieved by focusing on the potential for upzoning and the creative development possibilities of the site.
Bob Knakal’s extensive knowledge of the Hudson Yards area and his ability to market the property’s unique characteristics played a crucial role in securing such a high sale price.
Sale Price: $36,000,000
Seller: MD Brumin, LLC
Buyer: Confidential Developer
Seller Type: Private Owner
Property Type: Development Site, Garage
Sale Date: August 17, 2015
Property Details
The site at 606 West 30th Street was a 15,000-square-foot lot with a one-story building used by the NYC Department of Sanitation for garbage truck repairs.
The site’s FAR (Floor to Area Ratio) was a low 2.0, which limited the buildable square footage to just 30,000 square feet. However, its proximity to the massive Hudson Yards development made the property a prime candidate for potential upzoning, where some sites nearby had FARs as high as 33.0.
Full Address: 606 West 30th Street, New York, NY 10001
Zoning: Development, Garage
Property Type: Development Site
Buildable Square Footage: 30,000 square feet
Sale Price: $36,000,000
The Strategy: Maximizing Value Despite Zoning Limitations
Although the property had a limited buildable square footage of 30,000 square feet under its existing zoning, Bob Knakal and his team focused on the unique characteristics of the site and the potential for future upzoning.
The key to maximizing the price was to market the property not just for its as-of-right use but also for its potential to be upzoned, which could significantly increase its value.
Bob’s team researched the surrounding properties and discovered that adjacent sites were in the process of being rezoned. While this rezoning effort was not yet finalized, the signs were promising, and Bob used this information to position the property as a valuable development opportunity with significant upside potential.
Creative Development Concept
Even without upzoning, Bob’s team developed a creative fallback position to entice developers. They proposed the idea of building a slim tower on top of a one-story base, taking advantage of the large land size to create rare amenity spaces such as a private park, tennis court, or basketball court on the roof of the one-story base.
This unique design concept helped to differentiate the property from other development sites in the area and contributed to the creation of a bidding war.
Competitive Bidding and Final Sale
The competitive marketing process attracted multiple bids from developers, some of whom were confident in the likelihood of rezoning. The result was a sale at $36,000,000, or $1,200 per buildable square foot—a price far above market value if the upzoning had not been successful.
A new neighborhood record was achieved, and with the rezoning successfully completed, the site became even more valuable for the buyer.
Neighborhood Overview
Hudson Yards is one of Manhattan's most sought-after development areas.
Rezoning impact:
- Dramatically increased property values in the district.
Sale of 606 West 30th Street:
- Showcases how zoning restrictions can be addressed through strategic marketing.
- Highlights the importance of understanding local market dynamics.
- Bob Knakal and his team leveraged the potential for future upzoning to transform a property with limited buildable square footage into a highly desirable development site.
Conclusion
The sale of 606 West 30th Street illustrates Bob Knakal’s expertise in navigating complex zoning issues and maximizing value for his clients. By positioning the property as a unique development opportunity with significant upside potential, Bob was able to secure a record-breaking price for the seller.
This transaction highlights the importance of creative problem-solving and market knowledge in New York City’s competitive real estate market.
Testimonial
Here is what a member of the selling entity had to say about the transaction:
“Our property was in an unusual zoning district for Manhattan where the FAR was well below the FAR on surrounding blocks. Based upon the tremendous impact this could have on value, we chose Bob Knakal and his team to represent us because we felt he would be effectively able to convince buyers that there was additional tangible value in our asset beyond what currently existed. Bob’s extensive knowledge and unparalleled track record within the area made him an easy choice to represent us. Our confidence in him was well-founded as we achieved a price which set a record for the neighborhood. We would gladly recommend Bob and his team to other potential sellers.”
– Members of MD Brumin, LLC
Learn More About Manhattan Real Estate Development
Explore more of our remarkable deals in our exclusive online magazine featuringHudson Yards and surrounding area Development Site Sales. Discover how we consistently maximize value and sale prices for our clients across New York City's most desirable neighborhoods, including 509 West 38th Street in Hudson Yards, Midtown West, Manhattan.
