Successful Sale of 235 East 44th Street in Midtown East, Manhattan

Bob Knakal successfully arranged the sale of 235 East 44th Street marked a significant commercial air rights transaction in Midtown East, one of Manhattan’s most high-profile business districts. Sold for $3,025,000, this first-time sale represented a valuable opportunity to unlock underutilized development potential in a prime corporate corridor. Strategically located near the United Nations Headquarters and Grand Central Terminal, the property exemplifies the enduring appeal of Midtown East’s tightly zoned investment landscape.

Development Site Sales - For the complete list click here Development Sites

Sale Details and Transaction Overview

This transaction represented a strategic move to capitalize on transferable air rights, a rare and valuable commodity in Midtown East. The deal allowed the seller to monetize unused development capacity while enabling the buyer to position for future growth in a submarket defined by its vertical skyline and redevelopment activity.

Key Sale Details:

• Sale Price: $3,025,000
• Price per SF/BSF: $121.39
• Buyer: Michael Dinowitz, Ellenoff Grossan & Schole
• Seller: Tom Franklin, Franklin Family Trust
• Asset Class: Air Rights / Commercial / Development
• Sale Date: February 22, 2006

Highlights:

• Prime Midtown East location near Grand Central Terminal
• 24,920 buildable square feet of air rights
• Exceptional potential for office or mixed-use expansion
• First-time sale for the Franklin Family Trust

Property Overview: A Rare Air Rights Offering in Midtown East

The property at 235 East 44th Street sits between Second and Third Avenues, placing it within walking distance of Manhattan’s core business institutions. The sale included 24,920 buildable square feet of air rights, an asset class increasingly coveted in Midtown due to zoning constraints and redevelopment opportunities.

Property Details:

• Full Address: 235 East 44th Street, New York, NY 10017
• Lot Size: 20 ft x 100 ft
• Total Buildable SF: 24,920
• Stories: 2
• Buildings on Lot: 1
• Neighborhood: Midtown East

This air rights package offered a pathway for vertical expansion or future transfer, allowing developers to create modern commercial or mixed-use projects while maintaining the district’s architectural continuity.

Investment Highlights and Development Potential

Air rights transactions like this one highlight the growing trend among Midtown East investors seeking to maximize development density. As older buildings reach functional obsolescence, the value of unused buildable area continues to appreciate, providing owners and developers with strategic flexibility in one of New York City’s tightest zoning environments.

Investment Highlights:

• Prime Midtown East Corridor: Steps from the United Nations, Grand Central Terminal, and major corporate offices.
• Development Potential: Valuable air rights enabling vertical expansion or nearby site transfers.
• Stable Market Fundamentals: Consistent demand driven by zoning limits and modernization initiatives.
• Accessibility: Convenient proximity to subway lines, Metro-North, and commuter transit hubs.

Market Strategy and Positioning of the Sale

The marketing approach for 235 East 44th Street focused on emphasizing its air rights value, strategic Midtown location, and future upside amid an evolving commercial landscape. During this period, Midtown East rezoning discussions were gaining momentum, aimed at encouraging new office development and revitalization of aging properties.

By positioning this sale within the context of Midtown’s future redevelopment wave, Bob Knakal and his team successfully maximized value for the Franklin Family Trust, while providing Michael Dinowitz and his firm with a long-term asset well-aligned with ongoing market transformation.

Neighborhood Overview: Why Midtown East Remains a Global Power Center

Midtown East is one of Manhattan’s most prestigious and internationally recognized business districts. Defined by its mix of corporate offices, diplomatic institutions, luxury hotels, and residential towers, the area continues to attract institutional investors and global enterprises seeking proximity to both business and government centers.

Neighborhood Highlights:

• Proximity to Grand Central Terminal: Offers seamless access to Metro-North, LIRR (via Grand Central Madison), and multiple subway lines.
• United Nations Headquarters: A global landmark that anchors international activity and diplomatic presence.
• Dynamic Commercial Ecosystem: Home to office towers, consulates, and headquarters for multinational firms.
• World-Class Amenities: Surrounded by fine dining, luxury hotels, and cultural institutions such as the Chrysler Building and the Ford Foundation Center.

In-Depth View:
Midtown East’s prestige stems from its central location and consistent reinvestment in infrastructure and real estate. The ongoing modernization of office buildings and expansion of the East Midtown Subdistrict have reinforced property values and heightened investor demand for assets like air rights. This makes it one of the most strategically stable submarkets in all of New York City.

Conclusion: Unlocking Development Value in Midtown East Manhattan

The sale of 235 East 44th Street demonstrates the strategic potential of air rights transactions in core Manhattan submarkets. With a sale price of $3,025,000, this deal showcases the importance of expert representation and deep market insight in maximizing underutilized development assets.

Through Bob Knakal’s leadership, the transaction not only achieved strong pricing but also highlighted the role of air rights as a critical component in shaping Midtown’s evolving skyline. This sale reflects both the market’s depth of demand and the continued strength of Bob’s advisory expertise in complex commercial transactions.

Client Testimonial

“You hear stories all the time about how real estate brokers are slippery. My experience with Bob Knakal was completely opposite of that. He was a true professional and hung in there with us throughout the process.”
— Tom Franklin, Franklin Family Trust

Learn More About New York Real Estate

Explore our exclusive online magazine to discover remarkable New York real estate deals and Success Stories from the city and surrounding areas.

‍

Frequently Asked Questions About 235 East 44th Street, Midtown East

Q1: What was sold at 235 East 44th Street?
The sale involved 24,920 buildable square feet of commercial air rights from 235 East 44th Street in Midtown East. Air rights allow developers to expand vertically or transfer buildable space to nearby properties within zoning regulations.

Q2: What was the sale price and price per buildable square foot?
The property sold for $3,025,000, equating to approximately $121.39 per buildable square foot, representing a competitive valuation for Midtown East’s constrained development market.

Q3: Why are air rights important in Midtown East real estate?
Midtown East is densely built and subject to zoning caps that limit new construction. Air rights provide developers the ability to increase floor area ratio (FAR) by transferring unused buildable area from neighboring lots, which can be essential for redevelopment or expansion projects.

Q4: Who were the buyer and seller in this transaction?
The buyer was Michael Dinowitz of Ellenoff Grossan & Schole, while the seller was Tom Franklin of the Franklin Family Trust. Bob Knakal represented the seller in the successful execution of this deal.

Q5: What makes Midtown East a valuable submarket for investors?
Midtown East is home to world-renowned office towers, embassies, and international institutions. Its accessibility via Grand Central Terminal, stable tenant base, and ongoing modernization initiatives make it a core investment district for commercial real estate.

Q6: What kind of development potential exists for 235 East 44th Street’s air rights?
The air rights can be used for vertical expansion of an existing property or transferred to adjacent or nearby lots, depending on zoning and landmark status. This provides flexibility for future commercial or mixed-use development.

Q7: How does the East Midtown rezoning impact transactions like this?
The East Midtown Rezoning Plan, approved years after this sale, allows greater height and density for new developments. Transactions like the one at 235 East 44th Street positioned early investors to capitalize on these future zoning advantages.

Q8: How do air rights influence property values in Manhattan?
Air rights add significant long-term value by enabling future expansion and enhancing architectural potential. In Midtown East, where developable land is scarce, air rights often trade at premiums comparable to prime office floor space.

‍