Successful Sale of 436–438 West 38th Street in Hudson Yards, Midtown West

Bob Knakal successfully arranged the sale of 436–438 West 38th Street, a two-building development site located in Manhattan’s Midtown West/Hudson Yards corridor. The asset consisted of two adjacent buildings situated on separate tax lots, offering redevelopment potential despite significant physical challenges at the time of sale.
The transaction occurred well before Hudson Yards emerged as one of Manhattan’s premier commercial and residential districts, making this sale an example of early-stage positioning in a future growth market.

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Strategic Transaction Overview of the West 38th Street Development Site

This transaction involved properties that were difficult to market due to deferred maintenance, functional obsolescence, and a location that had not yet benefited from large-scale redevelopment. Through persistent outreach and targeted positioning, the asset was successfully placed with a buyer able to recognize long-term value.
The sale demonstrates how disciplined execution and market expertise can unlock liquidity even in transitional or overlooked submarkets.

Key Sale Information for 436–438 West 38th Street

The following transaction metrics highlight the fundamentals of this early Hudson Yards-area sale:

• Sale Price: $600,000
• Price per Square Foot: $11.32
• Buyer: Joseph Gurrera, Citarella
• Seller: Scott Goodman, Ancre Steel Products
• Seller Type: Corporation
• Asset Class: Development Site
• Sale Date: September 27, 1995
• Buildings: Two adjacent buildings on separate tax lots

Property Description: Two-Building Development Opportunity in Midtown West

The property is located on West 38th Street between Ninth and Tenth Avenues, within Manhattan’s Midtown West submarket. At the time of sale, the area was characterized by industrial buildings, warehouse uses, and limited redevelopment activity.
The site consisted of two separate structures with independent tax lots, allowing flexibility for assemblage, redevelopment, or long-term repositioning strategies.

Property Details:

• Full Address: 436–438 West 38th Street, New York, NY 10018
• Total Square Footage: Approximately 53,000 SF
• Buildings: 2
• Stories: One 3-story building and one 5-story building
• Lot Dimensions:
  
  • 25 ft x 98 ft
  • 29 ft x 98 ft
• Zoning: Development-oriented Midtown West zoning

Investment Highlights for 436–438 West 38th Street

Despite challenging physical conditions, the property’s scale and location offered meaningful long-term potential. The adjacency of two tax lots created optionality for redevelopment strategies as zoning, infrastructure, and demand evolved.
Buyers willing to take a long-term view saw value in acquiring real estate in a neighborhood positioned for transformation.

Highlights:

• Two-building configuration with separate tax lots
• Approximately 53,000 SF of total building area
• Positioned near Manhattan’s Midtown core
• Early exposure to what would become Hudson Yards

Market Strategy and Positioning in Midtown West (1995)

In 1995, Midtown West was largely viewed as transitional, with pricing based on existing conditions rather than future potential. The marketing strategy focused on identifying buyers who could see beyond the property’s immediate challenges and recognize the area’s long-term upside.
Through hands-on brokerage, frequent follow-ups, and clear communication of redevelopment potential, buyer interest was ultimately secured.

Hudson Yards / Midtown West Neighborhood Overview

Today, Hudson Yards is one of Manhattan’s most transformative large-scale developments, but in the mid-1990s, it was dominated by industrial buildings and transportation infrastructure. Investors active in the area at the time were effectively betting on rezoning, infrastructure investment, and long-term Manhattan growth.
Midtown West’s proximity to Penn Station and Midtown’s commercial core quietly positioned it for future redevelopment well before the market fully recognized its potential.

Neighborhood Evolution Highlights:

• Strategic proximity to major transit hubs
• Large blocks suitable for redevelopment and assemblage
• Increasing visibility as an expansion corridor from Midtown

Key Neighborhood Description Highlights

While demand was limited at the time of sale, the area’s fundamentals supported long-term appreciation. Connectivity to Midtown, access to major avenues, and block-scale building opportunities laid the groundwork for future transformation.
This transaction reflects how early investors and operators positioned themselves ahead of broader market momentum.

Neighborhood Strengths:

• Close proximity to Midtown employment centers
• Transitional zoning with redevelopment potential
• Emerging interest from forward-looking investors

Conclusion: Early-Stage Execution in a Transforming Manhattan Corridor

The sale of 436–438 West 38th Street illustrates the importance of perseverance and strategic execution when marketing challenging development assets. Despite significant physical and locational obstacles, Bob Knakal’s relentless effort and market insight resulted in a successful transaction aligned with the seller’s objectives.
This sale underscores Bob’s ability to navigate complex development-site dispositions and identify buyers prepared to invest ahead of market shifts.

Client Testimonial

“Our properties were admittedly in terrible condition and were in a challenging location. Notwithstanding these hurdles, Bob Knakal and his team did a fantastic job for us. I have never seen brokers work so hard. I felt like I was Bob’s only client. I could not be happier with the effort or the results.”
— Scott Goodman, Ancre Steel Products

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Frequently Asked Questions: 436–438 West 38th Street

Q1: What type of property was 436–438 West 38th Street?

The asset was a two-building development site consisting of adjacent structures on separate tax lots. It was marketed primarily for redevelopment rather than continued use in its existing condition due to significant deferred maintenance.

Q2: How large was the combined property?

The site totaled approximately 53,000 square feet across both buildings. This scale provided flexibility for assemblage, redevelopment, or repositioning strategies, even in a transitional market.

Q3: Why was this location considered challenging in 1995?

At the time of sale, Hudson Yards had not yet undergone rezoning or large-scale development. The area was dominated by industrial uses, warehouse buildings, and limited residential or commercial demand compared to today.

Q4: What makes this sale notable given the low price per square foot?

The asset traded at $11.32 per square foot, reflecting early-stage investment in a submarket that would later experience dramatic appreciation. The transaction highlights foresight and willingness to invest ahead of widespread market recognition.

Q5: How many buildings were included in the transaction?

Two buildings were included—one three-story structure and one five-story structure—each located on its own tax lot. This configuration offered long-term redevelopment flexibility.

Q6: Who acquired the property?

The buyer was Joseph Gurrera of Citarella, representing an operator willing to take a long-term view on Midtown West’s future potential.

Q7: How does this sale reflect early Hudson Yards investment trends?

The transaction demonstrates how early acquisitions in Hudson Yards were driven by belief in infrastructure investment, zoning evolution, and Midtown expansion—long before the neighborhood became a global real estate destination.

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