Two Property Types, One Successful Sale
Bob Knakal and his team successfully sold the development site at 20 Henry Street in Brooklyn Heights for $19.6 million. This sale involved a unique combination of property types, making it a challenging yet rewarding transaction.
Sale Details
Total Buildable Square Feet: 60,500
Final Sale Price: $19,600,000
Sale Price per Buildable Square Foot: $324
Sale Date: September 18,2007
Property Details
The asset at 20 Henry Street consisted of a vacant warehouse building and an adjacent vacant lot, all on a single tax lot. The property’s prime location in Brooklyn Heights made it an attractive prospect for residential conversion and development.
Full Address: 20 Henry Street, Brooklyn Heights, Brooklyn, NY
Zoning: Development
Property Type: Vacant warehouse & vacant lot (Development Site)
Lot Size: 60,500 buildable square feet
Sale Price: $19,600,000
Price per Buildable Square Foot: $324
Navigating Two Property Types: Industrial and Development
At 20 Henry Street, the seller faced a unique situation: a vacant warehouse and an adjacent vacant parcel. The industrial property was a preexisting non-conforming use, grandfathered in before the 1961 zoning resolution. This meant that the building could be converted into residential use, which would significantly increase its value. Meanwhile, the adjacent lot was a prime development site for a new residential building.
A key challenge was that the seller did not want to subdivide the lot into two tax parcels. However, since the ideal buyer would likely be the same for both the warehouse and the vacant lot, subdivision wasn’t necessary. Bob Knakal and his team undertook extensive feasibility diligence, creating a typical floor plan for converting the warehouse into apartments and conducting a massing study to determine how much density could be used on the vacant lot.
A Booming Market and Competitive Bidding
The property hit the market during a time when the Brooklyn condo market was red-hot, making it easier to find interested buyers. However, the true challenge was managing the intense interest—54 buyers submitted offers in the initial stages of marketing.
Bob and his team implemented a strategic marketing program, ensuring all interested parties had equal footing. Three rounds of competitive bidding took place, ultimately leading to a sale price higher than both the seller and the team had anticipated.
Conclusion
This transaction underscores Bob Knakal's ability to maximize value for his clients by carefully navigating unique challenges and leveraging extensive market knowledge. By engaging in thorough diligence and creating a competitive bidding process, the team was able to secure a highly favorable outcome.
Testimonial
Here’s what Charles Herzka of Broadway Management, the seller of 20 Henry Street, had to say about the sale:
“This site has redevelopment potential for the main building and development potential for the yard. Bob and his team found a great buyer for us. They did everything by the books. We highly recommend them.”
– Charles Herzka, Broadway Management
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