In a major Midtown office transaction, Empire Management has sold its longtime asset at 363 Seventh Avenue to the Sioni Group for $21.3 million. Listed by Bob Knakal’s BKREA, the deal drew significant attention, challenging the narrative that Class B office buildings are falling out of favor.
Key Highlights of the Deal:
High Demand, High Activity: The listing generated 68 tours and 39 offers, highlighting strong investor appetite for well-located Midtown assets despite broader market challenges.
Prime Midtown Location: Located at the corner of Seventh Avenue and West 30th Street, the 22-story office building is just one block from Penn Station and Madison Square Garden.
Historic Ownership: Empire Management, via its affiliate Gateway Realty, had owned the 83,642-square-foot property since May 2000.
Diverse Tenant Mix: Current occupants include Kulen Law Firm, Modern Migraine neurology practice, and Fresh & Co. on the ground floor, offering stable income.
Zoning Limits Residential Conversion: While nearby Sioni projects are targeting residential use, Bob Knakal confirmed 363 Seventh Avenue is not zoned for residential conversion.
Strategic Trade Moves: Alongside this sale, Empire acquired two nearby office buildings—229 West 36th Street and 256 West 38th Street—for just over $50 million, a fraction of their 2017 valuation.
Frequently Asked Questions (FAQ):
Who brokered the sale of 363 Seventh Avenue?
The property was listed by Bob Knakal’s team at BKREA, though the final broker(s) involved in closing the deal were not publicly disclosed.
What kind of building is 363 Seventh Avenue?
It is a 22-story, 83,642-square-foot Class B office building with ground-floor retail, located in Midtown Manhattan.
What are Sioni Group’s plans for the building?
While Sioni has filed residential conversion plans nearby at the Stewart Hotel, 363 Seventh Avenue is not zoned for residential use, so its future will likely remain commercial.
Why did the property attract so much interest?
Its central location near Penn Station, existing tenants, and long-term stability made it a strong investment opportunity in a recovering office market.
When did Empire Management originally purchase the building?
Empire acquired the property in May 2000. The sale price at the time was not disclosed in public records.
What does this sale suggest about Midtown's office market?
Despite broader concerns, well-positioned Class B buildings in transit-rich areas like Midtown continue to see strong investor interest.
