Successful Sale of 968 Third Avenue in Midtown East, Manhattan
Bob Knakal successfully closed the sale of 968 Third Avenue, marking a major milestone in Manhattan’s Midtown East retail market, as this transaction represented the first time the asset had ever sold on the open market. The seller, Yale University & Yale School of Medicine, selected Bob Knakal for his expertise in nonprofit dispositions and high-profile institutional sales.
This rare offering drew significant attention due to its prime retail location, strong development potential, and exceptional market fundamentals within Midtown East.
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Sale Overview: A Rare First-Time Offering Along Third Avenue
The property achieved a $2,200,000 sale price, translating to $185.26 per SF/BSF, a competitive figure reflecting the strength of Midtown East’s retail and commercial demand. The buyer, 968 Third LLC led by Bernard Mendik, recognized the long-term strategic value of owning a corner retail asset along one of Manhattan’s most heavily trafficked corridors.
This sale involved Bob Knakal, Ed (full name optional), and the Bob Knakal Advisory Team, whose combined efforts delivered a seamless transaction process.
Key Transaction Details:
- Sale Price: $2,200,000
- Buyer:Bernard Mendik
- Seller: Yale University & Yale School of Medicine
- Asset Class: Commercial, Retail
- Sale Date: June 1, 2000
Property Details: Prime Retail Location in the Heart of Midtown East
Located at 968 Third Avenue, New York, NY 10022, the property sits between East 57th Street and East 58th Street, one of Manhattan’s most established and high-visibility retail destinations. The area is surrounded by major national retailers, luxury residential buildings, and strong commercial anchors that consistently generate high daily foot traffic.
The site offers approximately 11,875 SF/BSF, making it suitable for retail repositioning, owner-user operations, or future development scenarios.
Key Property Highlights:
- Approx. 11,875 SF/BSF
- Positioned along a high-traffic Midtown East retail corridor
- Surrounded by luxury condominiums, co-ops, and Class-A commercial towers
- Steps from major transit hubs and premier retail anchors
Highlights of the Transaction: What Made 968 Third Avenue Stand Out
The sale of 968 Third Avenue offered investors a rare combination of first-time availability, prime Midtown East placement, and strong development potential. Properties previously held by major nonprofits rarely hit the market, especially along a corridor as competitive as Third Avenue.
Investors saw long-term value in the asset’s positioning, surrounding density, and the corridor’s proven ability to support national retail tenants and destination foot traffic.
Highlights:
- First-ever sale of this property
- 11,875 SF/BSF of retail and development potential
- Located on a highly trafficked corridor in Midtown East
- Competitive pricing aligned with corridor demand trends
Market Strategy and Positioning: Targeting High-Value Retail Investors
Selling a nonprofit-owned asset in Midtown East required a strategic marketing approach centered on value positioning, market timing, and appealing to sophisticated buyers who understood vertical potential. Bob Kanakl highlighted the property’s first-time offering, below-market price per SF, and future redevelopment flexibility, ensuring strong buyer engagement.
This messaging positioned the asset as a rare, signature acquisition in a corridor where supply is extremely limited and turnover is scarce.
Neighborhood Overview: Midtown East’s Strength in Retail, Transit, and Density
Midtown East remains one of Manhattan’s most established commercial and residential districts, supported by consistent demand from professionals, residents, global businesses, and tourists. Its combination of luxury retail, Class-A office buildings, top-tier dining, and cultural institutions creates unmatched stability and enduring property value.
The area benefits from exceptional transit access, major employment hubs, and a vibrant seven-day consumer base.
Nearby Destinations:
- Fifth Avenue Shopping District
- Bloomingdale’s Flagship Store
- Central Park
- Transit Connectivity: E, M, N, R, W, 4, 5, 6 trains
- Corporate Headquarters and Luxury Residences
Conclusion: A Strategic Retail Transaction in Manhattan’s Midtown East
The sale of 968 Third Avenue emphasizes the power of expert advisory, tailored market strategy, and deep neighborhood understanding. By guiding Yale University & Yale School of Medicine through each stage of the process, Bob secured optimal results while positioning the buyer for long-term growth in a prized Manhattan corridor.
This transaction further demonstrates Bob’s ability to deliver precision, insight, and exceptional client service across New York’s most competitive markets.
Client Testimonials
“We had a challenging history with 968 Third Avenue and Bob Knakal was there every step of the way with us. When it was time to sell our interest in the property, Bob was an easy choice. We are extremely pleased with the results Bob produced and would be happy to recommend him to other sellers. He will go above and beyond the call of duty to get the job done for you.”
— Lisa Amzallag, Columbia University
“Bob, thanks for all of your hard work on our behalf. We couldn't have done this without you!”
— Thomas Livigne, Cornell University
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Frequently Asked Questions
Q1: What type of property is 968 Third Avenue?
968 Third Avenue is a commercial retail property located in Midtown East, one of Manhattan’s most established business and shopping corridors. Its prime frontage offers outstanding visibility, heavy foot traffic, and strong long-term retail performance potential.
Q2: How large is the building or buildable area?
The property offers approx. 11,875 SF/BSF, giving investors the ability to operate existing retail, reposition the asset, or consider future redevelopment depending on zoning and long-term strategy.
Q3: Who purchased the property and what was their investment strategy?
The buyer, 968 Third LLC led by Bernard Mendik, is an investor with deep knowledge of Midtown East retail fundamentals. The acquisition reflects a long-term investment strategy focused on stable corridor performance and prime retail positioning.
Q4: Why was the sale notable or unique?
This was the first time the property had ever traded, making it highly desirable in a submarket where long-held nonprofit and institutional assets rarely become available.
Q5: What makes Midtown East a strong location for commercial retail?
Midtown East offers a blend of corporate density, luxury residential populations, national retail brands, and top-tier transit access. These elements support strong foot traffic and rental stability, making it one of Manhattan’s most attractive retail markets.
Q6: What was the sale price and price per SF?
The property closed at $2,200,000, with a price per square foot of $185.26—a competitive valuation supported by Midtown East’s retail demand and long-term growth potential.
Q7: Are nonprofit-owned retail properties common in Manhattan?
No. Retail properties owned by major nonprofits like Yale University are relatively rare in Manhattan, especially in Midtown East. Their sale often represents a once-in-a-generation opportunity, which is why this transaction attracted significant interest.
Q8: What made the property attractive despite limited zoning information?
Even without full zoning data included, the property’s location, frontage, and buildable area signal strong future potential for commercial, retail, or repositioning strategies, making it appealing to long-term investors.
