Successful Sale of 3-Building Walk-Up Portfolio in Manhattan’s Upper East Side
Bob Knakal successfully closed the sale of a 34-unit, 3-building multifamily walk-up portfolio in the prestigious Upper East Side of Manhattan. The portfolio includes 402 East 80th Street, 1522 First Avenue, and 1667 First Avenue—each building offering stabilized rental housing in a neighborhood known for its residential appeal and high occupancy rates.
The properties were sold on July 6, 2009, for a combined purchase price of $10,715,000, showcasing strong investor demand for Upper East Side multifamily assets. With a total of 20,780 square feet, the deal achieved an average of $515.64 per square foot, affirming the value of walk-up properties in high-demand submarkets.
Portfolio Sales - For the complete list click here Portfolio Sales
Sale Details
The three-building portfolio was acquired by Rainbow Holding Co LLC and Edward Penson, while the seller was Gary Barnett of Extell Development, one of New York City's most prolific developers. The sale took place on July 6, 2009, in the heart of the Upper East Side, a neighborhood favored for its stability and consistent rental income.
Transaction Highlights:
- Sale Price: $10,715,000
- Date Closed: July 6, 2009
- Buyer: Rainbow Holding Co LLC, Edward Penson
- Seller: Gary Barnett, Extell Development
- Asset Class: Multifamily – Walk-Up (Portfolio)
- Units: 34
- Buildings: 3
- Total SF: 20,780
- Price per SF: $515.64
Property Details
Located on East 80th Street and First Avenue, the three-building walk-up portfolio lies within one of Manhattan’s most historically stable rental corridors. The addresses—402 East 80th Street, 1522 First Avenue, and 1667 First Avenue—are nestled within a short walking distance to the Second Avenue subway line, making them highly accessible to transit.
The buildings are positioned in a prime Upper East Side submarket, prized for its blend of pre-war charm and rental stability. Though not within a designated historic district, the properties benefit from proximity to well-maintained housing stock and retail conveniences that anchor long-term tenancy.
Investment Highlights:
- Prime location on First Avenue and East 80th Street
- 34 residential units across 3 contiguous tax lots
- Total buildable square footage: 20,780 SF
- High rental demand due to proximity to transit, schools, and amenities
Market Strategy and Positioning
Despite market uncertainty in 2009, investor appetite for core Upper East Side multifamily assets remained strong. Bob Knakal’s marketing strategy focused on the enduring strength of the submarket, positioning the properties as a reliable long-term hold for income-focused investors. The walk-up nature of the buildings—often overlooked for larger assets—became a compelling angle in a market where many were seeking lower price points with steady upside.
By emphasizing in-place income, minimal deferred maintenance, and the potential for modest rent growth, the portfolio appealed to both local and out-of-state investors aiming to establish or expand their presence in Manhattan’s east side rental market.
Neighborhood Overview: Upper East Side, Manhattan
The Upper East Side is among the most prestigious residential neighborhoods in New York City, widely regarded for its refined lifestyle, high-end retail, and cultural institutions. This corridor between East 72nd and East 96th Streets is a preferred address for professionals, families, and long-term renters.
Located near the East River and serviced by the Q train, First Avenue continues to evolve, blending modern infrastructure with legacy residential character.
Upper East Side Neighborhood Highlights:
- Proximity to the Second Avenue Subway (Q line) enhances convenience and tenant desirability
- Surrounded by prominent institutions, including Weill Cornell Medical College and Sotheby’s
- Walking distance to Central Park and Carl Schurz Park, offering abundant green space
- Thriving retail corridor with grocery stores, restaurants, and cafes along First and Second Avenue
- Excellent public and private schools create long-term tenant demand
- Historic architecture and pre-war charm retained in many walk-up and elevator buildings
Conclusion
The $10.715 million sale of 402 East 80th Street, 1522 First Avenue, and 1667 First Avenue demonstrates the continued strength of Manhattan’s Upper East Side multifamily market. This successful transaction, executed under Bob Knakal’s leadership, highlights Bob Knakal’s commitment to delivering superior outcomes through strategic advisory and in-depth market knowledge.
With extensive experience navigating high-value portfolio sales, our team ensured a smooth transaction process that maximized value for all parties involved.
Learn More About New York Real Estate
Explore our exclusive online magazine to discover remarkable New York real estate deals and Success Stories from the city and surrounding areas.
Frequently Asked Questions
Q1: What kind of property was sold in this portfolio?
This was a 3-building multifamily walk-up portfolio comprising 34 total units. The buildings are classic pre-war walk-ups located in Manhattan's Upper East Side.
Q2: How much square footage was included across the portfolio?
The combined total was 20,780 square feet, equating to approximately $515.64 per square foot based on the final sale price.
Q3: What was the appeal of this walk-up portfolio to investors?
The appeal stemmed from stable tenancy, strong location near transit and medical institutions, and the long-term reliability of rental income in the Upper East Side.
Q4: Were the properties rent-stabilized or market rate?
While exact unit breakdowns weren't disclosed, properties of this type and era in the Upper East Side typically include a mix of rent-stabilized and market-rate units, offering both stability and upside potential.
Q5: How does this sale reflect market conditions in 2009?
Despite being in the post-recession period, demand for well-located, income-generating assets remained strong in core Manhattan areas like the Upper East Side, especially for walk-ups with minimal capital needs.
Q6: Is there redevelopment or repositioning potential for these properties?
Given the location and underlying zoning, there may be modest potential for reconfiguration or modernization, but these properties are primarily held for their steady rental income and low vacancy risk.
