The Real Deal New York

Diamond District building being shopped as redevelopment site

Property at 36-42 West 47th Street latest on the block to go on the block; 98K sf available

September 29, 2014 03:50PM
By David Jones

36-west-47th

36-42 West 47th Street in Midtown

Massey Knakal Realty Services is in early discussions with investors interested in buying the Diamond Center of America, a 16-story office tower that is being marketed as a potential redevelopment site.

The building, located at 36-42 West 47th Street, is home to some of the top jewelry merchants in the world, but the property has a number of leases set to expire and is seen as a potential site for anything from new commercial development to residential or hospitality.

“We’re very early in the marketing process,” said Bob Knakal, chair of Massey Knakal. “We believe the property will be attractive to a wide range of potential purchasers given the flexibility of the zoning there.”

The brokerage was retained to receive ownership request proposals, but declined to comment on specifics regarding potential buyers or asking prices.

The fully occupied property, originally built in 1924, includes almost 91,000 square feet of office space and 7,000 square feet of retail spaced, according to PropertyShark. The building is located within the Special Midtown District, which allows developers to consider the site for both commercial and residential use, according to listing documents obtained by The Real Deal.

Zoning permits at the site would allow for more than 96,000 square feet of development, according to listing documents.

The property, currently owned by Sun Realty Capital, is located next to Extell Develolpment’s International Gem Tower, at 50 West 47th Street, where SL Green signed an agreement for $275 million earlier this month to buy the upper floors.

That agreement calls for the purchase of 319,000 square feet of office space on the 22nd through 34th floor. The space was previously listed by Cushman & Wakefield as office rental space.

As The Real Deal previously reported, the National Jewelry Exchange Building at 2 West 47th Street was sold in March for about $56.6 million. The 78,230 square foot office and retail tower, located less than a block from the Gem Tower, last sold for $26 million in 2007.

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