Successful Sale of 113-117 West 24th Street / 112-118 West 25th Street in Chelsea, Manhattan
Bob Knakal successfully closed the sale of a significant development site located at 113-117 West 24th Street and 112-118 West 25th Street in the Chelsea neighborhood of Manhattan. The site, which consisted of parking garages with no long-term leases and approximately 270,000 buildable square feet, was sold for $67,500,000. The buyer, John Lam, went on to develop two hotels on the site: a Renaissance Hotel on 25th Street and a Motto by Hilton on 24th Street.
Sale Details
The development site was sold to John Lam for $67,500,000. The transaction, which closed on August 8, 2013, resulted in the creation of two significant hotel projects in Chelsea, adding valuable hospitality space to one of Manhattan’s busiest neighborhoods.
Sale Price: $67,500,000
Seller: Extell Development (Gary Barnett)
Buyer: John Lam
Seller Type: Prominent Real Estate Developer
Property Type: Development Site
Sale Date: August 8,2013
Property Details
The development site spanned both 24th and 25th Streets, with 75 feet of frontage on 24th Street and 85 feet of frontage on 25th Street. The site had 270,000 buildable square feet, which included approximately 110,000 square feet of air rights acquired from adjacent properties. The zoning allowed for commercial use only, making hotel development the most feasible option for the land.
Full Address: 113-117 West 24th Street / 112-118 West 25th Street, New York, NY 10011
Zoning: Commercial (no residential equivalent)
Property Type: Development Site
Buildable Square Footage: 270,000 square feet
Sale Price: $67,500,000
From Conversation to Opportunity
In 2012, Bob Knakal was retained by The Albert Einstein College of Medicine to sell a portfolio of office properties worth approximately $200,000,000. While discussing this portfolio with Gary Barnett, one of New York City's most active developers, Gary expressed no interest in the portfolio. However, this conversation led Bob to inquire about Gary’s development site on West 24th and 25th Streets.
The site, which Gary had assembled over time and included significant air rights, was ideal for hotel development due to the commercial-only zoning. Gary, who had other hotel projects underway at the time, wasn’t ready to develop this site and agreed to have Bob Knakal and his team exclusively market it for sale.
Market Strategy and Buyer Targeting
Bob Knakal’s team targeted prominent hotel developers for this site, given its ideal zoning and location for hotel development. Among the most active buyers in the market were Sam Chang and John Lam, who had previously partnered and become two of New York’s most prolific hotel developers.
John Lam ultimately became the successful buyer, purchasing the site for $67,500,000. His plans for the site included constructing two hotels: a Renaissance Hotel on 25th Street and a Motto by Hilton on 24th Street.
Market Analysis
Chelsea is one of Manhattan’s most vibrant neighborhoods, known for its combination of residential, commercial, and retail spaces. The location’s proximity to major attractions and transportation hubs made it an ideal site for hotel development. The zoning for commercial use, without a residential equivalent, positioned this site perfectly for developers like John Lam, who recognized the opportunity to build two large hotels in a high-demand area.
Conclusion
The sale of 113-117 West 24th Street and 112-118 West 25th Street illustrates Bob Knakal’s ability to turn a casual conversation into a major opportunity. By recognizing the potential of the site and targeting the right buyers, Bob and his team were able to secure a record sale and help develop two major hotels in Chelsea. The transaction underscores the importance of market knowledge, zoning expertise, and strategic buyer targeting in successful real estate deals.
Testimonial
“We have done several deals with Bob Knakal and his team and each time they go above and beyond for us. Bob’s knowledge of zoning and air-rights is a huge benefit. If you are selling a development site in New York City, you must speak to Bob and his team.”
– Gary Barnett, Extell Development
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