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Successful Sale of 34 East 61st Street in Lenox Hill, Manhattan
Bob Knakal successfully arranged the sale of 34 East 61st Street, a two-unit walk-up building in Lenox Hill, a prime enclave of Manhattan’s Upper East Side. The property was sold to restaurant operator Steve Tolzis, marking a user-driven acquisition of a mixed-use asset with nearly 10,000 buildable square feet.
This low-rise walk-up was previously owned by Leonard Stern and served as a rare opportunity for an end-user buyer to gain a foothold in one of Manhattan’s most prestigious neighborhoods.
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Sale Details
The sale closed on August 18, 1986, at a total price of $1,250,000, translating to $128.13 per square foot based on its 9,756 BSF.
- Buyer: Steve Tolzis (Il Cantonori Restaurant)
- Seller: Leonard Stern
- Property Type: Mixed-Use, Walk-Up
- Transaction Type: User Sale
- Date Closed: August 18, 1986
Description Highlights:
- Two-unit building with commercial user
- Approximately 9,756 buildable square feet
- User acquisition in a prime Upper East Side location
- Sold to a restaurant operator for on-site use
Property Details
Located at 34 East 61st Street, between Madison and Park Avenues, the property sits in one of the most exclusive submarkets in New York City—Lenox Hill. The surrounding area is known for its historic charm, high-end retail, and world-class residential appeal.
- Full Address: 34 East 61st Street, New York, NY 10065
- Zoning: R8B/C1-5 (assumed based on area and era; zoning subject to verification)
- Stories: Walk-Up
- Total Buildable Square Footage: 9,756 BSF
Investment Highlights:
- Built: Prior to 1986
- Units: 2 (commercial and residential mix)
- User Building: Ideal for restaurant, showroom, or boutique retail owner
- Neighborhood Foot Traffic: Proximity to high-end retail and fine dining corridors
Market Strategy and Positioning
At the time of sale, the Upper East Side remained one of the city’s most stable and sought-after neighborhoods, especially for user-owners seeking long-term control of space. The transaction reflected the era’s growing trend of restaurant and hospitality operators acquiring real estate to hedge against rental volatility.
This user-driven acquisition by Il Cantonori highlights the strong appetite for owning versus leasing, especially in highly trafficked, prestigious areas like East 61st Street.
Neighborhood Overview
Lenox Hill is a distinguished enclave in the Upper East Side, celebrated for its mix of cultural institutions, classic architecture, and upscale retail. The neighborhood offers enduring appeal for both commercial and residential use.
Key Description Highlights:
- High-End Retail & Dining: Located just off Madison Avenue, surrounded by fashion houses, art galleries, and fine dining establishments
- Proximity to Central Park: A few blocks from Central Park and Fifth Avenue
- Medical & Institutional Presence: Close to NewYork-Presbyterian/Weill Cornell and other world-renowned facilities
- Prestigious Residential Character: Tree-lined blocks with limestone townhouses, luxury co-ops, and landmarked architecture
Conclusion
The sale of 34 East 61st Street exemplifies the strength of user-driven transactions in Manhattan’s premier neighborhoods. Situated in the heart of Lenox Hill, this mixed-use walk-up provided the perfect opportunity for restaurant owner Steve Tolzis to establish a long-term presence on the Upper East Side.
With a track record of providing tailored real estate strategies, Bob Knakal and the team once again delivered optimal results for both buyer and seller—emphasizing the power of location, user alignment, and strategic positioning in a competitive market.
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Frequently Asked Questions
Q1: What type of building is 34 East 61st Street?
It’s a two-unit, mixed-use walk-up building featuring both residential and commercial components. Its layout made it ideal for a restaurant operator seeking ownership in a prime retail corridor.
Q2: Why was the property attractive to the buyer?
The buyer, Steve Tolzis of Il Cantonori, likely sought control over his operating location. Owning the real estate gave him stability in a high-rent district, along with long-term upside potential in a trophy submarket.
Q3: What is the significance of the property’s location?
Located between Madison and Park Avenues, 34 East 61st Street sits in one of Manhattan’s most affluent and trafficked areas. The nearby luxury retail and Central Park access added to its investment value.
Q4: How does this sale reflect the market trends of the 1980s?
In the 1980s, there was a growing movement among restaurateurs and small business owners to purchase rather than lease. This sale captures that trend, showing a user locking in real estate in a top-tier location during an era of rising rents and real estate values.
