Successful Sale of 215-219 West 28th Street in Chelsea, Manhattan
Bob Knakal and his team successfully closed the sale of the development site at 215-219 West 28th Street in Manhattan’s Chelsea neighborhood. American Development Group, LLC (ADG), which had assembled the site only eight months prior, decided to sell the property to take advantage of the rising land market. The site sold for $50,250,000, or approximately $520 per buildable square foot, setting a record price for the area.
Sale Details
The development site was sold for $50,250,000, setting a record for the area. The sale represented more than double the amount ADG had invested to assemble the site, showcasing the success of Bob Knakal’s marketing strategy and ADG’s decision to capitalize on the rising market.
Sale Price: $50,250,000
Seller: American Development Group, LLC (Perry M. Finkelman)
Buyer: New Developer Backed by Overseas Investor
Seller Type: Real Estate Developer
Property Type: Development Site
Sale Date: September 16, 2013
Property Details
The development site at 215-219 West 28th Street consisted of three properties assembled by American Development Group, LLC, who had also secured additional air rights from neighboring properties. The site offered a prime development opportunity in Chelsea, one of Manhattan’s most sought-after neighborhoods.
Full Address: 215-219 West 28th Street, New York, NY 10001
Zoning: Development, Garage, Retail
Property Type: Development Site
Sale Price: $50,250,000
From Risk to Reward: The Decision to Sell
Initially, ADG intended to develop the site themselves, but with the rapid increase in land values in 2013, they realized they could achieve a substantial return on their equity without the risks associated with development. However, they were only committed to selling the property if they could secure a record price, and they needed to move quickly due to an impending loan deadline.
To achieve their price expectations and maximize the exposure of the property, ADG contacted Bob Knakal and his team, who were known for their expertise in selling development sites across New York City. The seller agreed that the buyer would likely need to be an “outside the box” developer, someone willing to pay a premium for the site. A comprehensive marketing campaign was launched, reaching 11,000 potential purchasers within the first month.
Market Strategy and Results
Bob Knakal’s team implemented a highly targeted marketing strategy that identified several potential purchasers who were willing to meet or exceed ADG’s price expectations. Remarkably, the top three bidders were not from the list of 200 logical buyers. To create maximum leverage, three contracts were sent out simultaneously, driving competition among the bidders.
Within 30 days of executing the contract, the property was sold for $50,250,000, or approximately $520 per buildable square foot, a record price for the area. The buyer was a relatively new developer backed by an overseas investor, highlighting the power of casting a wide net in the marketing process.
Neighborhood Overview
Chelsea remains one of Manhattan’s most dynamic neighborhoods, known for its blend of commercial, residential, and retail spaces. The area’s continued development and demand for new construction have made development sites like 215-219 West 28th Street highly attractive to both domestic and international developers. The sale price of $520 per buildable square foot reflected the strength of the Chelsea market in 2013, a trend that continues to this day.
Conclusion
The sale of 215-219 West 28th Street demonstrates the importance of strategic marketing and expert market knowledge in achieving record-breaking prices. Bob Knakal’s team was able to secure a buyer willing to pay a premium for the site, while ADG’s decision to sell at the right time led to a substantial return on their investment. The success of this transaction underscores the value of working with an experienced broker to maximize the exposure and value of a property.
Testimonial
“Our pricing expectations were admittedly aggressive, but Bob Knakal and his team convinced us that by maximizing the exposure of the site to a very broad market, that a first-time or non-obvious buyer or large private equity firms partnered with new market players could be obtained who would pay us our price. The implementation of their program was flawless and provided us with tremendous leverage to use with the buyers they lined up. It was a fantastic execution of a proven system.”
– Perry M. Finkelman, American Development Group, LLC
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