Successful Sale of 1525 Bedford Avenue in Crown Heights, Brooklyn
Bob Knakal successfully arranged the sale of 1525 Bedford Avenue, a prominent corner lot in Crown Heights with complex environmental conditions and substantial development potential. Despite a known contamination issue from a gas station tenant, Bob and his team secured a final sale price of $32,500,000—setting a record for the neighborhood in terms of price per buildable square foot.
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Sale Details
The transaction marked a major win for the seller and for Crown Heights as a growing development hub.
What began as a valuation between $24.3 million and $27.15 million turned into a competitive bidding process that ultimately achieved a record-setting outcome.
- Sale Price: $32,500,000
- Sale Date: January 26, 2015
- Property Address: 1525 Bedford Avenue, Brooklyn, NY
- Property Type: Development Site
- Zoning: Split-Zoned with Inclusionary Housing Bonus
- Buildable Square Feet: 144,404
- Price per Buildable SF: $225.06
- Lot Size: 29,182 SF (approximate)
- Corner Lot Location: Bedford Avenue and Eastern Parkway
Property Details
This six-building assemblage sat on a valuable corner lot in Crown Heights, just as the neighborhood began gaining traction among developers. It was an active gas station and car wash at the time of sale, which presented an environmental challenge due to a spill on site. This caused initial hesitation among potential buyers, particularly given the unknown scope and cost of required remediation work.
The Client: Owner of a Long-Held Corner Lot with Environmental Risk
The property had been privately owned since 2002 and was one of the few remaining large-scale development opportunities in Crown Heights. The environmental condition created a barrier for buyers to make strong offers. Bob Knakal and his team viewed this as an opportunity to apply strategic marketing, industry expertise, and competitive leverage to reach the right audience.
Market Strategy and Competitive Leverage
Despite the contamination concerns, Bob’s team used a well-crafted marketing campaign to reframe the conversation—focusing on the property’s as-of-right development potential, the additional upside from the inclusionary housing bonus, and its highly visible location.
- The listing generated over 60 signed confidentiality agreements
- 19 total offers were submitted, with 14 exceeding the high end of the original valuation
- A multi-round bidding process was launched, pushing buyers to compete for the opportunity
- Key negotiations focused on how each party would address the environmental remediation
Ultimately, the winning bid came from a seasoned mixed-use developer who appreciated both the value and long-term potential of the site.
Neighborhood Overview
Crown Heights continues to gain attention for its growing development opportunities, diverse community, and strong transportation access.
- Located near the Brooklyn Museum and Prospect Park
- Easy access to Eastern Parkway and multiple subway lines
- One of Brooklyn’s most promising residential markets
- Increasing demand for mixed-use development along commercial corridors
- Historical architecture and cultural significance add long-term appeal
Conclusion
The successful sale of 1525 Bedford Avenue highlights Bob Knakal’s ability to see opportunity where others see risk. His strategy—grounded in deep local knowledge, competitive marketing, and strong buyer engagement—allowed his team to overcome significant challenges and deliver a record-setting result for the seller.
By leaning into the property’s strengths and managing the environmental concerns with transparency and planning, Bob was able to unlock the true value of this Crown Heights site.
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