Successful Sale of 1205-1225 Broadway and 846 Avenue of the Americas in NoMad, Manhattan
Bob Knakal successfully closed the sale of the development site at 1205-1225 Broadway and 846 Avenue of the Americas in the NoMad neighborhood of Manhattan. This complex transaction involved multiple parcels, differing zoning districts, and a creative approach that included tax lot subdivision and a joint venture development strategy.
The final sale price for the combined properties was $124,700,000, with the development now home to the iconic Virgin Hotel.
Sale Details
The development site was sold in two parts:
- 1205-1225 Broadway and 846 Avenue of the Americas for $87,900,000
- Additional Sixth Avenue parcels for $36,800,000
These transactions resulted in a major development project that transformed the block and added significant value to the neighborhood, including the construction of the Virgin Hotel.
Total Sale Price: $124,700,000
Buyer: John Lam, Alchemy Properties
Seller Type: High-Net-Worth Investors
Sale Date: September 12, 2011
Property Details
The development site at 1205-1225 Broadway and 846 Avenue of the Americas spanned multiple parcels, with a total of 289 feet of frontage along 30th Street. The properties were in two different zoning districts, with a mix of office, retail, and development potential.
The complex nature of the site, including oddly shaped parcels, required a unique approach to maximize its value. A portion of the site now houses the Virgin Hotel, while a joint venture agreement allowed for the development of residential and retail spaces.
Full Address: 1205-1225 Broadway, 846 Avenue of the Americas, New York, NY 10001
Zoning: Commercial, Office, Retail, Development
Property Type: Development Site
Sale Price: $124,700,000
The Complexity of the Deal
The development site included four parcels: 1205 and 1225 Broadway, and 846 Avenue of the Americas. The properties were adjacent but located in two different zoning districts—one for Sixth Avenue and one for Broadway. This zoning complexity, along with the unusual shapes of the properties, made the deal particularly challenging.
Bob Knakal’s team suggested a tax lot subdivision to “square off” the Broadway site, allowing for more efficient development. This created two distinct development sites, one of which became the future home of the Virgin Hotel.
A joint venture strategy was also employed, allowing one of the reluctant sellers to retain a retail condo interest, while a condo developer (Alchemy Properties) bought into the partnership to buy out the more motivated seller.
The reluctant seller’s equity interest in the retail condo provided a built-in 1031 exchange when the residential condo was completed.
Creative Structuring and Buyer Targeting
Initially retained to sell the Broadway properties, Bob Knakal’s team recognized the potential to add value by bringing in the adjacent properties on Sixth Avenue, owned by the same group.
After convincing the owners of 846 Avenue of the Americas to subdivide the property, Bob structured a deal that allowed John Lam, a major New York City developer, to purchase the newly created development site. Lam’s eagerness to purchase helped push the deal forward, and the Virgin Hotel now stands on the former Broadway parcels.
The Sixth Avenue property had two partners: one willing to sell and one who was reluctant. Bob structured a transaction in which a condo developer, Alchemy Properties, bought into the partnership and paid enough to buy out the motivated seller.
The reluctant seller’s interest was converted into an equity stake in the retail condo, providing a valuable 1031 exchange.
Neighborhood Overview
NoMad, in the heart of Manhattan, is one of the city's most dynamic neighborhoods.
Key features of NoMad:
- Vibrant mix of hotels, restaurants, retail spaces, and offices.
- Significant growth and development over the past decade.
- Strong demand for new construction.
Sale of 1205-1225 Broadway and 846 Avenue of the Americas:
- Demonstrates continued interest in NoMad as a prime location for large-scale development.
- Highlights appeal for hospitality and residential projects.
Conclusion
The sale of 1205-1225 Broadway and 846 Avenue of the Americas demonstrates Bob Knakal’s ability to navigate complex real estate transactions and deliver exceptional results.
By employing creative strategies like tax lot subdivision and joint venture agreements, Bob and his team were able to maximize the value of the development site and secure a high-profile sale.
This transaction transformed the block and contributed to the growth of NoMad as a key development hub in Manhattan.
Testimonials
“We thank Bob Knakal for all his hard work, diligence, honesty, ingenuity, and integrity in brokering the sale of 1205-1225 Broadway. This is the second such transaction effectuated by Bob for us and, if such services are needed in the future, we will not look anywhere else but Bob Knakal.”
– Calvin C. Haddad, Seller of 1205-1225 Broadway
“Our partnership group did not always agree. Bob Knakal perfectly shepherded us through a very complex deal.”
– Howard Waxman, Seller of Sixth Avenue Parcels
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