Successful Sale of TriBeCa Portfolio in Manhattan
Bob Knakal successfully closed the sale of a six-building development and mixed-use assemblage located at 57-59 Murray Street, 65-73 West Broadway, and 59-61 Warren Street in TriBeCa, Manhattan. The sale price reached $50,000,000, marking one of the top values ever achieved in the area for a development site.
This rare block-front opportunity stood out for its 175 feet of frontage on West Broadway and additional exposure on Murray and Warren Streets. The assemblage presented over 54,750 buildable square feet, with both retail and residential potential, solidifying its value as one of TriBeCa’s premier development sites.
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Sale Details
The TriBeCa assemblage achieved a sale price of $50,000,000, translating to $913 per buildable square foot, the second-highest ever achieved in the neighborhood.
- Sale Price: $50,000,000
- Price per SF/BSF: $913.24
- Buyer: Craig Wood, Cape Advisors
- Seller: Alan Palestine
- Seller Type: Private Seller
- Asset Class: Development, Mixed-Use
- Sale Date: May 16, 2015
Highlights of the Sale:
- Six-building assemblage across Murray Street, West Broadway, and Warren Street
- 175 feet of West Broadway frontage
- 54,750 buildable square feet with retail and residential potential
- Over 50 signed confidentiality agreements and 12 competitive offers
Property Details
The property encompassed multiple addresses across TriBeCa’s core, including 57-59 Murray Street, 65-73 West Broadway, and 59-61 Warren Street, New York, NY 10007.
The site was uniquely positioned for redevelopment due to its scale and exposure:
- Lot Dimensions: 75 x 175 feet
- Stories: 4
- Total Buildable Square Feet: 54,750
- Units: 60 potential residential units
- Exposure: 175 feet on West Broadway, 50 feet on Warren Street, and 75 feet on Murray Street
One significant complexity in the assemblage was 59 Warren Street, which contained Interim Multiple Dwelling (IMD) tenants—among the most restrictive rent regulations in NYC. This posed a development challenge, potentially limiting buildable square footage to 46,000 if unresolved.
Market Strategy and Positioning
At the time of sale, TriBeCa was one of the most sought-after development markets in Manhattan, with demand fueled by luxury condominium conversions and strong retail activity.
Bob Knakal and his team positioned the assemblage as a rare block-front development opportunity, highlighting its dual potential for luxury residential and high-visibility retail space. Their campaign included widespread distribution to investor, broker, and territory lists, with particular emphasis on retail-driven upside to push pricing upwards of $1,000 per buildable square foot.
This strategy generated over 50 confidentiality agreements and 12 offers within three weeks, ultimately leading to a record-setting sale at $913 per buildable square foot.
Neighborhood Overview
TriBeCa, short for “Triangle Below Canal Street,” has long been recognized as one of Manhattan’s premier residential destinations. Its transformation from an industrial hub into a haven for luxury loft living has created consistent demand for high-end developments.
Key Highlights of TriBeCa:
- Architectural Character: Historic warehouses and loft-style buildings converted into luxury residences.
- Cultural Appeal: Home to upscale dining, boutique retail, and the annual Tribeca Film Festival.
- Convenient Location: Close proximity to SoHo, the Financial District, and Hudson River Park.
- Residential Demand: Consistently ranks as one of New York City’s most desirable and expensive neighborhoods.
The neighborhood’s mix of cultural prestige, architectural charm, and market strength continues to attract top developers and investors, making the sale of this assemblage particularly significant.
Conclusion
The $50,000,000 sale of the TriBeCa Portfolio underscores the continued strength of Manhattan’s development market and the enduring appeal of TriBeCa as a luxury destination. Bob Knakal and his team’s ability to craft a tailored marketing campaign and navigate the complexities of IMD tenancy challenges led to one of the highest prices per buildable square foot ever achieved in the neighborhood.
Testimonial
“Our six-building assemblage on West Broadway with diverse tenancies created a marketing challenge. Given the complexity, we felt that Bob Knakal’s vast experience with all types of development sites would have a very positive impact on our marketing process. Bob and his team lived up to their reputation getting us the price we wanted in a timely manner.”
— Alan Palestine, Seller
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Frequently Asked Questions
Q1: What type of property was included in the TriBeCa Portfolio sale?
The portfolio consisted of six separate buildings with mixed-use potential, offering both residential and retail opportunities across West Broadway, Murray Street, and Warren Street.
Q2: How much buildable square footage did the site offer?
The assemblage provided up to 54,750 buildable square feet. However, if IMD tenancy issues at 59 Warren Street had not been resolved, this could have been reduced to approximately 46,000 square feet.
Q3: What was the sale price per buildable square foot?
The sale achieved $913 per buildable square foot, making it the second-highest price ever recorded in TriBeCa for a development property at the time.
Q4: Why was this sale considered significant?
The sale demonstrated the demand for large-scale, block-front development sites in TriBeCa and underscored the value of expert marketing strategy in achieving a record-setting outcome.
Q5: What were the main challenges associated with this property?
The primary challenge was the presence of IMD tenants at 59 Warren Street, which created uncertainty around the total buildable square footage and the overall development potential of the site.
Q6: What made TriBeCa an attractive location for this investment?
TriBeCa is one of Manhattan’s most prestigious neighborhoods, known for its luxury residential conversions, cultural institutions, high-end retail, and historic charm, all of which attract both residents and developers.
