Successful Sale of 525 Lexington Avenue in Midtown East, Manhattan
Bob Knakal led the successful sale of 525 Lexington Avenue, a 35-story hotel asset in Midtown East, for $154,000,000. The property, once operated as a hospitality asset, was acquired by Hawkins Way Capital with plans to convert it into student housing. The deal capitalized on a growing trend in adaptive reuse and marked a forward-looking transformation for a major Midtown skyscraper.
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Sale Details
The transaction closed on February 3, 2023, marking one of the most notable hospitality-to-residential conversions in Midtown East. With a total of 411,000 square feet, the property was sold at a price per square foot of $374.70. Bob Knakal’s team leveraged the building’s vertical scale, central location, and proximity to Manhattan’s higher education institutions to secure a buyer with a long-term strategy for student housing.
- Sale Price: $154,000,000
- Asset Type: Hotels & Hospitality (Conversion to Student Housing)
- Square Footage: 411,000 SF
- Price per SF: $374.70
- Stories: 35
- Lot Size: 22,245 SF
- Sale Date: February 3, 2023
- Neighborhood: Midtown East, Manhattan
- Address: 525 Lexington Avenue, New York, NY 10017
Property Details
Rising 35 stories tall in the heart of Midtown East, 525 Lexington Avenue was a longstanding hospitality destination. Its large building footprint, coupled with a highly visible Lexington Avenue frontage, made it an exceptional candidate for redevelopment. Hawkins Way Capital saw potential in converting the structure into student housing—a use aligned with increasing demand from New York City’s student population.
The property's vertical layout, generous square footage, and proximity to both transportation and academic institutions created a unique repositioning opportunity that few other buildings in the area could match.
Market Strategy and Adaptive Reuse
Bob Knakal identified an opportunity to market the hotel not solely for its hospitality use but as a redevelopment prospect. In a post-COVID landscape where hotel demand remained uneven, the team redirected interest toward institutional buyers looking to create long-term residential value.
Positioning the property within the context of Midtown East’s evolving urban landscape, the team presented 525 Lexington Avenue as an ideal candidate for student housing. They also emphasized its location near universities such as NYU, Cornell Tech, and others, which strengthened buyer interest from this niche sector.
Neighborhood Overview
Midtown East remains one of New York City’s most dynamic commercial and residential zones:
- Close to Grand Central Terminal and multiple subway lines
- Proximity to academic hubs including NYU, LIM, and Baruch College
- Blend of historic skyscrapers and new development projects
- High pedestrian and commuter traffic with strong rental demand
- Attractive for institutional investors seeking long-term repositioning
Conclusion
The sale of 525 Lexington Avenue for $154 million exemplifies Bob Knakal’s ability to identify long-term trends and match assets with evolving market needs. His understanding of Midtown East’s redevelopment potential, coupled with his strategic marketing approach, helped achieve a strong sale result. The conversion from hotel to student housing signals a continued shift in the city’s real estate landscape, where adaptability and insight are key to maximizing asset value.
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Frequently Asked Questions
What will 525 Lexington Avenue be used for after the sale?
The building is being converted from a hotel into student housing, reflecting a shift in use due to changing market conditions and demand.
How large is the property and what makes it unique?
At 411,000 square feet and 35 stories tall, the building offers a rare combination of vertical density and redevelopment flexibility in Midtown East.
Why was the location important to the buyer?
The property’s central location near transit and universities made it ideal for student housing. The surrounding neighborhood supports consistent occupancy and long-term value.
