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Successful Sale of 991 Third Avenue in Midtown East, Manhattan
Bob Knakal successfully closed the sale of 991 Third Avenue, a three-story retail property located directly across from Bloomingdale’s in the heart of Midtown East, Manhattan. The property was sold for $18,420,000 after a highly competitive process. Despite challenges involving the assumption of an existing mortgage, Bob’s team executed a targeted outreach strategy that ultimately delivered a timely closing and exceeded the seller’s expectations.
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Sale Details
The property commanded $18,420,000, translating to $2,474.48 per square foot based on its 7,444 square feet. The deal closed on March 5, 2012.
- Sale Price: $18,420,000
- Price per SF/BSF: $2,474.48
- Buyer: Heskel Elias, Heskel Group
- Seller: Seble Tareke-Williams, Emmes Asset Management Company
- Asset Class: Commercial, Retail
- Sale Date: March 5, 2012
The property was fully occupied, triple-net leased to Capital One Bank until 2031, generating $880,000 in annual rent, offering both stability and long-term income.
Property Details
Address: 991 Third Avenue, New York, NY 10022
Situated on the northeast corner of East 59th Street and Third Avenue, this prime retail property benefits from heavy pedestrian and vehicle traffic due to its direct proximity to Bloomingdale’s flagship store.
Investment Highlights:
- Stories: 3
- Lot Size / Dimensions: Corner lot with premier exposure
- Total Rentable Square Footage: 7,444 SF
- Tenancy: Capital One Bank (NNN lease until 2031)
- Cash Flow: $880,000 per year
- Cap Rate: 4.88%
Market Strategy and Positioning
At the time of sale, the retail investment market in Midtown East was extremely competitive, with buyers seeking well-located assets offering stable, creditworthy tenants. Bob Knakal and his team launched a broad but targeted marketing effort, contacting every active retail investor across Manhattan and the outer boroughs, while also prioritizing 1031 exchange buyers.
The ability to navigate the financing challenge—requiring assumption of the existing mortgage—set this transaction apart. Ultimately, the buyer was a well-known retail investor expanding into Manhattan, marking their first purchase in the borough.
Neighborhood Overview
Midtown East is one of Manhattan’s most established and dynamic neighborhoods, blending corporate headquarters, luxury hotels, cultural institutions, and some of the city’s most recognized retail corridors.
- Directly across from Bloomingdale’s: The property enjoys unparalleled visibility near one of New York’s most iconic department stores.
- Close to major transit hubs: Just steps from the 59th Street–Lexington Avenue subway station, connecting commuters across multiple lines.
- Prestigious office and residential presence: Home to corporate towers, embassies, and luxury residences, ensuring constant foot traffic.
- Retail corridor strength: Third Avenue and Lexington Avenue host national retailers, restaurants, and service businesses that thrive on the area’s steady demand.
In summary, Midtown East’s reputation for prestige, convenience, and retail strength made 991 Third Avenue an ideal investment property with long-term upside.
Conclusion
The sale of 991 Third Avenue highlights Bob Knakal’s ability to execute complex transactions in challenging market conditions. By leveraging market knowledge, extensive investor relationships, and a targeted strategy, the team delivered a successful outcome for the seller while introducing a new investor to the Manhattan market.
Testimonial
“The team led by Bob Knakal did a superb job for us, culminating in a sale price exceeding our initial expectations. Throughout a time-consuming and tenuous process of getting the servicer to allow transfer of the existing mortgage to a new borrower, Bob’s team stayed on the case, resulting in a timely closing. As we have achieved in our prior experiences with Massey Knakal, we are very pleased with the results of this sales effort. I would not hesitate to utilize the resources of Bob Knakal again for future sales assignments.”
— Seble Tareke-Williams, EMMES & Co. LLC
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Frequently Asked Questions
Q1: What type of property is 991 Third Avenue?
991 Third Avenue is a three-story retail property in Midtown East, Manhattan. At the time of sale, it was fully leased to Capital One Bank under a long-term NNN lease.
Q2: What was the sale price of 991 Third Avenue?
The property sold for $18,420,000, equating to $2,474.48 per square foot, reflecting the strong demand for prime retail in Midtown East.
Q3: Who occupied the building at the time of sale?
The property was occupied by Capital One Bank under a triple-net lease that extended through 2031, ensuring stable and predictable income for the new owner.
Q4: What challenges were involved in the transaction?
The primary challenge was the requirement for the buyer to assume the existing mortgage. Bob Knakal and his team navigated months of negotiations with the lender to facilitate the transfer successfully.
