Mixed-Use Loft Goes for $617 Per SF

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NEW YORK CITY-A six-story, mixed-use loft building at 29 W. 21st St. on the border of Chelsea and the Flatiron District in Manhattan was sold by Massey Knakal Realty Services in an all-cash transaction valued at $8.6 million. A spokesperson for the company tells GlobeSt.com that the property was sold by Dennis and Matthew Diamond of Boyess Realty Inc.

The buyer was Nicolas Oudin of Gaveco Real Estate Inc. in Manhattan, the spokesperson says. The seller listed no reasons for selling, the spokesperson explains.

The 25-foot-wide property is located on the north side of West 21st Street between Fifth and Sixth avenues. The building is comprised of the Lonesome Dove Western Bistro restaurant on the ground floor and five floor-through loft units above. The upper floors could be delivered vacant. The property contains approximately 13,949 sf above grade and an additional 11,231 sf of air rights. The property lies in the Ladies’ Mile Historic District, so additions would require Landmark’s Commission approval.

“The buyer was looking to take full advantage of working with the Landmark’s Commission to gain approvals to add several floors to the existing structure so the building can eventually be converted to residential condos,” the spokesperson tells GlobeSt.com. The property sold for $616.53 per sf to the Manhattan converter.

“This neighborhood has seen a tremendous surge in demand for vacant buildings since they’re prime for condo conversion,” says Massey Knakal CEO John Ciraulo, who exclusively represented the seller. The transaction occurred at a capitalization rate of 4.6%.