Successful Sale of 539 West 54th Street in Midtown West, Manhattan
Bob Knakal successfully closed the sale of 539 West 54th Street, a five-story development site located in Midtown West, Manhattan. Representing Catholic Charities, Bob and his team at JLL guided the nonprofit organization through a complex transaction during the challenging COVID-19 period. The site offered unique value due to its large footprint, development potential, and strategic west side location.
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Sale Details
The transaction closed on December 28, 2021, with a final purchase price of $25,000,000, translating to approximately $306.41 per buildable square foot.
The buyer, Michael Heletz of Excel Group, acquired the property from Catholic Charities, a respected nonprofit organization that had previously utilized the building for institutional purposes.
Key Sale Highlights:
- Sale Price: $25,000,000
- Price Per BSF: $306.41
- Buyer: Michael Heletz, Excel Group
- Seller: Catholic Charities
- Date Closed: December 28, 2021
- Property Type: Development
- Building Count: 5-story institutional structure
Property Details
Located at the southeast corner of West 54th Street and Eleventh Avenue, 539 West 54th Street sits in the heart of Midtown West, an area that continues to experience robust demand for both residential and mixed-use developments. The site lies within close proximity to major transportation corridors, cultural venues, and a growing array of residential towers.
Address: 539 West 54th Street, New York, NY 10019
Lot Size: 12,553 square feet
Buildable Square Footage: 81,591 BSF
Zoning: Suitable for future residential or mixed-use development (subject to verification)
Investment Highlights:
- 5-story existing structure with significant redevelopment potential
- Lot dimensions support large-scale vertical construction
- Strategic west side location near Hudson River greenways
- Located within a high-demand submarket seeing ongoing revitalization
Market Strategy and Positioning
Amid pandemic-era uncertainties, this transaction required extensive strategic planning. Bob Knakal’s team leveraged the property’s development-friendly dimensions and desirable west side location to attract competitive bids. The building's position just steps from burgeoning residential corridors and new developments made it particularly appealing to developers looking to capitalize on Midtown West's long-term growth trajectory.
The sale reflected broader market trends in Manhattan, where institutional and nonprofit owners have increasingly looked to monetize real estate assets to fund mission-critical services. Simultaneously, developers are seeking buildable parcels in up-zoned or repositionable neighborhoods—making this transaction especially timely.
Neighborhood Overview: Midtown West, Manhattan
Midtown West has evolved from a traditionally industrial zone to one of Manhattan’s most dynamic live-work-play neighborhoods. It now features a vibrant blend of luxury rentals, office towers, and cultural institutions. The area is home to some of the city's most transformative development projects and continues to attract institutional capital and residential demand.
Neighborhood Highlights:
- Proximity to Hudson Yards: One of the largest private developments in U.S. history, featuring high-end retail, offices, and residences
- Theater and Entertainment Scene: Near Broadway theaters, the Intrepid Sea, Air & Space Museum, and Lincoln Center
- Access to Green Space: Steps from the Hudson River Greenway and multiple parks
- Transit Connectivity: Close to major subway lines (A/C/E, 1/2/3), Amtrak at Penn Station, and the Lincoln Tunnel
- Ongoing Investment: New high-rise residential and hotel developments are actively reshaping the skyline
- Cultural Diversity: A historically diverse and artistic enclave, with a mix of longstanding institutions and modern developments
Conclusion
The sale of 539 West 54th Street illustrates the power of local expertise and long-standing relationships in New York City’s complex development market. Bob Knakal and his team at JLL navigated institutional requirements and market headwinds to deliver a strong result for Catholic Charities, marking a key moment for nonprofit asset repositioning in Manhattan. The site's size, location, and zoning flexibility made it an ideal candidate for redevelopment, contributing to its strong appeal among active developers.
Testimonial
“Catholic Charities worked with Bob Knakal and his team at JLL on the sale of 524 West 54th Street. We found them to be highly responsive, very knowledgeable about the market during a challenging period, and able to get us competitive prices on the building. Given Bob’s track record with land sales in New York, and vast knowledge of the market, he and JLL were a natural choice for us. As with many sale transactions, this one had many twists and turns, including complications that accompanied the COVID-19 pandemic. Bob and his team led us through the process, were always there when we needed them, and saw the transaction through to a successful conclusion. We were very pleased with the results and highly recommend Bob and his team to other sellers in NYC.”
— Marion Boteju, Catholic Charities of the Archdiocese of New York
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Frequently Asked Questions
Q1: What made 539 West 54th Street an attractive development site?
Its corner location, large footprint, and nearly 82,000 buildable square feet provided flexible development potential for residential or mixed-use use. The proximity to Hudson Yards added long-term value.
Q2: What kind of buyer typically acquires institutional properties like this one?
Buyers are often experienced developers or investment groups like Excel Group, who seek properties with scale and clear redevelopment potential in emerging neighborhoods.
Q3: What zoning applies to the site at 539 West 54th Street?
The site benefits from flexible zoning, allowing for residential, commercial, or community facility use, which widens the pool of interested developers.
Q4: Why was Bob Knakal chosen to handle this sale?
Catholic Charities selected Bob due to his unmatched experience in land sales, deep knowledge of the local market, and proven ability to navigate complex transactions.
Q5: How does this property compare to others in Midtown West?
Unlike many mid-block lots, this site is a corner parcel with significant frontage and clear institutional history, making it more attractive for high-profile redevelopment.
Q6: What challenges arose during the transaction?
The deal faced delays and uncertainties tied to the COVID-19 pandemic, but the Knakal team provided continuous guidance and secured a competitive price and favorable terms despite the turbulence.
