The Real Deal New York

SL Green looks to sell mixed-use Third Avenue site

Sources say property might sell for upwards of $100M

April 17, 2014 06:35PM
By Katherine Clarke

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Bob Knakal and

Bob Knakal and 985-989 Third Avenue

Major office landlord SL Green is looking to sell a development site on the southeast corner of East 59th Street and Third Avenue directly across the street from Bloomingdale’s department store, The Real Deal has learned.

The parcel has a combined 90,000 buildable square feet and could be developed into a mixed-use retail and residential tower.

Bob Knakal and Clint Olsen of Massey Knakal Realty Services are marketing the site. While Knakal said there was no official asking price, an industry insider said SL Green would be seeking close to $100 million.

A spokesperson for SL Green declined to comment on the listing.

The site is comprised of three separate buildings, at 985, 987 and 989 Third Avenue. SL Green acquired the main site for $18 million in 2012 but later snapped up the air rights required to build the prospective tower.

It was not clear is SL Green had originally intended to develop the site itself.

A new owner could even build an additional 21,000 square feet, which could be used to beef up the property’s residential component, if they were to receive an inclusionary housing bonus.

If it sells, the Third Avenue site would be the latest acquisition on the strip of Third Avenue near Bloomingdale’s. The development firm World-Wide Group paid $37 million for an 11-story commercial building at 155 East 60th Street across the street from Bloomingdale’s earlier this year.

The purchase gave the developer a total of about 300,000 square feet of development rights along East 60th Street, between Lexington and Third avenues, The Real Deal previously reported.

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