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Successful Sale of the Extell First Portfolio in Eastside, Manhattan
Bob Knakal successfully arranged the sale of the Extell First Portfolio, a multifamily package of properties located on First Avenue in Manhattan’s Eastside neighborhood. The transaction closed on March 15, 2007, for a total of $10,000,000. Representing a significant repositioning opportunity, the portfolio consisted of three buildings comprising 43 residential units with a combined buildable area of 31,622 square feet.
Team members involved in the sale included Bob Knakal, Chairman of New York Investment Sales at JLL, whose deep market knowledge and transaction strategy helped drive a successful close. The portfolio’s key appeal lay in its desirable Eastside location and its favorable price per buildable square foot.
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Sale Details
This portfolio transaction was executed for a total consideration of $10,000,000, reflecting a competitive price of $316.24 per buildable square foot.
The buyer, Marty Newman, acquired the assets from Gary Barnett of Extell Development, a prominent developer in New York City.
The deal was officially closed on March 15, 2007, marking a significant Eastside transaction in a highly competitive market.
Property Highlights:
- Total Units: 43
- Total Buildable SF: 31,622
- Number of Buildings: 3
- Price Per Buildable SF: $316.24
Property Details
Located along First Avenue in Manhattan’s desirable Eastside, this portfolio included three contiguous walk-up buildings with development potential and long-term rental upside. The properties are situated near major transportation corridors and neighborhood staples, providing tenants with convenient access to Midtown and the Upper East Side.
Submarket Appeal: The Eastside is widely recognized for its strong residential demand, stable rental income, and long-term value appreciation.
Full Address: The Extell First Portfolio (Formerly Barnett Portfolio), First Avenue, Eastside, Manhattan, NY
Key Investment Highlights:
- Year Built: Not disclosed (assumed pre-war construction based on asset class)
- Unit Count: 43 total residential units
- Lot Configuration: Three adjoining buildings
- Total Buildable SF: 31,622
Market Strategy and Positioning
At the time of sale in 2007, the Eastside market was experiencing strong investor demand, particularly for rental buildings with repositioning potential. With rising land values and an increasing interest in multifamily portfolios, this sale aligned with broader market trends.
The buyer capitalized on the opportunity to acquire multiple adjacent assets with scale and upside, while Extell Development shifted focus toward its larger mixed-use developments across Manhattan.
Neighborhood Overview
Vibrant Eastside Appeal:
The Eastside of Manhattan continues to be a favored destination for investors due to its proximity to Midtown offices, hospitals, and cultural institutions.
Key Local Highlights:
- Access to Transit: Near the 4/5/6 subway lines and multiple MTA bus routes.
- Healthcare Hub: Close to NYU Langone and Memorial Sloan Kettering hospitals.
- Retail Convenience: Surrounded by grocery stores, cafes, and daily essentials.
- Long-Term Growth: Consistently strong rental demand and low vacancy rates.
Neighborhood Snapshot:
- Strong Rental Base: The Eastside is known for its stable tenant population and consistent income-producing properties.
- Institutional Investment Appeal: Portfolios in this area are regularly sought after by both local and international investors.
- Retail & Community Amenities: The neighborhood blends daily conveniences with local character, making it attractive to long-term tenants.
Conclusion
The sale of the Extell First Portfolio demonstrates the continued strength of Eastside multifamily properties and the value of local market expertise in executing complex portfolio deals. Bob Knakal’s leadership and targeted outreach ensured the seller achieved the desired outcome while allowing the buyer to gain a strategic foothold in one of Manhattan’s most resilient submarkets.
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Frequently Asked Questions
Q1: What is the Extell First Portfolio?
The Extell First Portfolio refers to a three-building multifamily package formerly owned by Extell Development, located on First Avenue in Manhattan’s Eastside.
Q2: How many units are in the portfolio?
The portfolio consists of 43 residential units across three buildings.
Q3: What is the total buildable square footage of the property?
The combined buildable square footage of the portfolio is 31,622 square feet.
Q4: Why was this portfolio attractive to investors?
Its First Avenue location, development potential, and existing rental income made it an attractive value-add or long-term hold opportunity in a strong Manhattan submarket.
Q5: What was the price per buildable square foot?
The portfolio sold for approximately $316.24 per buildable square foot, a competitive rate for the area and time of sale.
Q6: What role did Bob Knakal play in the sale?
Bob Knakal led the transaction strategy and brokered the deal, helping both parties achieve a favorable outcome through targeted marketing and market positioning.
