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Successful Sale of 1421-23 Third Avenue in the Upper East Side, Manhattan
Bob Knakal successfully arranged the sale of 1421-23 Third Avenue, a mixed-use property on Manhattan’s Upper East Side, for $3,180,000. Originally built as a furniture showroom, the asset was ultimately repositioned as a medical office facility. Located between East 80th and East 81st Streets, the building presented a rare user opportunity in a high-demand corridor.
The transaction closed on April 3, 1985. Key team members involved in the transaction include Bob Knakal, Claude Block, and representatives from Soundvest Associates. The buyer, American Medical International, secured the asset for a full-building user conversion.
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Sale Details
This rare mixed-use asset traded for $3,180,000, translating to approximately $202.87 per square foot based on the 15,675 buildable square feet.
Closing Date: April 3, 1985
Buyer: American Medical International (represented by Claude Block and Soundvest Associates)
Seller: Maria Almendarez, L & M Properties (Almendarez Family)
Seller Type: Retailer
Asset Class: Mixed-Use, User
Transaction Highlights:
- Full-building user sale on a major Upper East Side corridor
- Medical conversion potential in prime residential/commercial zone
- High visibility with retail-style frontage along Third Avenue
- Rare offering of scale in an underserved medical office submarket
Property Details
Situated on the east side of Third Avenue between East 80th and East 81st Streets, 1421-23 Third Avenue occupies a highly trafficked stretch of the Upper East Side. This corridor, surrounded by residential high-rises and private medical clinics, has long been a sought-after destination for healthcare-related users.
Full Address: 1421-23 Third Avenue, New York, NY 10028
Neighborhood: Upper East Side, Manhattan
Zoning: Mixed-Use (subject to commercial and medical occupancy)
Total Square Footage (SF/BSF): 15,675
Units: 16
Investment Highlights:
- Built in 1985
- 16 total units adaptable for medical or office use
- Converted from furniture showroom to medical offices
- Located in one of Manhattan’s most stable and affluent submarkets
Market Strategy and Positioning
The Upper East Side's medical corridor has consistently attracted users seeking long-term ownership opportunities in well-trafficked areas. Bob Knakal recognized the potential for user conversion early on and strategically positioned the property as an ideal fit for a healthcare buyer. By targeting medical operators and leveraging existing demand, the team was able to facilitate a seamless transition from retail to user-based office use.
The sale aligned with a growing trend of owner-occupied medical real estate in prime Manhattan neighborhoods. With limited inventory available and rising patient volumes in outpatient care, demand for turnkey medical office space has only increased—making this transaction both timely and strategic.
Neighborhood Overview
The Upper East Side is known for its affluent demographics, walkability, and institutional anchors. With its mix of residential buildings, elite schools, and proximity to world-class hospitals, the neighborhood is a top choice for both families and healthcare providers.
Neighborhood Highlights:
- Located near Lenox Hill Hospital, Weill Cornell Medical Center, and Mount Sinai
- High foot traffic along Third Avenue retail corridor
- Access to the Q and 6 subway lines
- Surrounded by private schools, boutique retailers, and local cafes
Conclusion
The sale of 1421-23 Third Avenue demonstrates the continued appeal of user-driven real estate in Manhattan’s Upper East Side. With its flexible layout, high visibility, and strategic location, the building was a perfect match for American Medical International's needs.
Bob Knakal’s extensive market knowledge and ability to identify and target the right buyer resulted in a successful repositioning and conversion. His role in the transaction underscores Bob’’s expertise in user building sales and adaptive reuse strategies.
Testimonial
"Bob Knakal’s knowledge of the Upper East Side market and strategic approach were critical in finding the right buyer. His team understood our goals and delivered a buyer who saw the property’s potential immediately."
– Claude Block, Soundvest Associates
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Frequently Asked Questions
Q1: What was the original use of 1421-23 Third Avenue before the sale?
Originally, the property functioned as a furniture showroom before its conversion into medical offices.
Q2: Why was this property attractive to the buyer?
Located along a heavily trafficked stretch of Third Avenue and near major medical institutions, the property offered ideal conditions for outpatient or specialist medical use.
Q3: What type of buyer was targeted in the marketing process?
The strategy focused on user-buyers, especially within the healthcare industry, looking for stable locations to occupy long-term.
Q4: How does this sale reflect the Upper East Side real estate trends of the time?
In the 1980s, there was a noticeable trend toward user-occupancy, particularly in the medical sector, as healthcare operators sought stable, long-term control of their locations.
Q5: What were some unique features of the property?
The building offered retail-style frontage, multiple units adaptable for clinical use, and strong zoning flexibility to accommodate user needs.
