Monday, February 3, 2014

IPA Sells Development Site in New York City’s Hudson Yards for $26.25 Million



346 West 40th Street, Hudson Yards area, New York City, NY

Peter Von Der Ahe

NEW YORK, NY, Feb. 3, 2014 – Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of 346 West 40th St., a 98,750-square-foot development site on the south side of 40th St. between 8th Ave. and 9th Ave. in New York City’s Hudson Yards area.

The $26,250,000 sales price equates to $266 per square foot.

Glen Kunofsky
            The site is one of a few lots within a special Hudson Yards development subdistrict that gives developers of commercial or residential projects in the area an opportunity to receive a zoning bonus that would allow their project to exceed the established maximum floor-to-area ratio.

            Marcus & Millichap’s Glen Kunofsky and IPA’s Peter Von Der Ahe, Joseph Koicim and Sean Lefkovits advised the seller, an East Coast-based family partnership that had owned the site for approximately 25 years. The buyer is hotel developer Sam Chang.

Joseph Koicim
            “Hudson Yards is the largest private development ever undertaken in New York City,” says Koicim. “The area was rezoned in 2005 and allows for approximately 26 million square feet of new office development, 20,000 new apartments, 2 million square feet of retail and 3 million square feet of hotel space.”


            “The development will bring millions more visitors to New York City and create over 30,000 jobs,” adds Von Der Ahe. “The acquisition of 346 West 40th St. gives the new owner a tremendous opportunity to redevelop as much as 177,750 square feet on the site.”

Sean Lefkovits
            “The sellers are a private family that decided to pursue a 1031 tax deferred exchange through Marcus & Millichap’s NNN Pro Group,” says Kunofsky. “The family was able to diversify and attain a much higher current yield by acquiring multiple net- lease properties.”

            A six-story, 250-space, 53,172-square-foot parking garage currently occupies the space. Chang purchased the long-term triple-net lease on the site from Peach Parking Corp. That lease would have expired in February 2030.

For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager
(925) 953-1716

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