Midtown South Garages Trade for North of $100M

NEW YORK CITY-A block-through development site in Manhattan's Chelsea neighborhood that currently holds a three-story parking garage has traded for $67.5 million in all-cash deal, one of two Midtown South garages that traded on Wednesday for a combined $117.5 million. Massey Knakal Realty Corp., which brokered the sale of the Chelsea site, did not identify buyer or seller on Wednesday; however, published reports show that the parcel at 113-117 W. 24th St., a/k/a 112-118 W. 25th St., traded in 2007 to 118-125 W. 25th St. LLC, a partnership of Anglo Irish Bank Corp. and Extell Development, which paid $42.5 million.

Massey Knakal says the zoning for the site, an approximately 85' x 197.5' lot, is MI-6, making it suitable for hotel development. The New York Post reported in 2010 that Extell planned to develop a full-service hotel on the site, and had bought development rights for two adjacent properties, bringing the total to about 269,000 square feet. These air rights were included in the sale, and put the sale price at about $251 per buildable square foot.

“This transaction illustrates the continued traction in the land market which is absolutely on fire these days,” says Massey Knakal chairman Bob Knakal, who represented the seller along with Brock Emmetsberger. “Based upon the tremendous tourism industry in this town, hotel rooms are desperately needed and the marketplace is responding accordingly.”

Another Midtown South parking garage traded on Tuesday at a price per square foot that sets a new record for a residential development site. The vacant seven-story garage at 17 E. 12th St. fetched $50.2 million, or $1,034 per buildable square foot, breaking the record of $750 per square foot set by the sale of 1108 Park Ave. in 2012.

Newmark Grubb Knight Frank's Justin DiMare brokered the sale on behalf of the Brauser Group to Rigby Real Estate Fund II LP, led by Peter Armstrong of Rigby Asset Management. “Sites of this size and zoning flexibility are unique in Greenwich Village,” says DiMare. “The ability to deliver modern residences at this location drew wide interest.” The new owner reportedly plans an 11-story luxury condominium building on the site.