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Macklowe snags three Lenox Hill properties for $100 million

SL Green the seller of two of the locations on Third Avenue

From left: Harry Macklowe, Bob Knakal and 985-989 Third Avenue
From left: Harry Macklowe, Bob Knakal and 985-989 Third Avenue

Macklowe Properties officially closed on a $100 million transaction for three properties on the Upper East Side, according to city records.

Office landlord SL Green is selling two of the three locations981 Third Avenue and 983 – 987 Third Avenue for about $69 million. Emmes Group is selling 989 Third Avenue, for $31.3 million to Macklowe, the firm headed by Harry Macklowe. The three buildings as well as the air rights were all put on the market together.

SL Green purchased the main site for $18 million in 2012 and later also bought the air rights for the site.

The block is directly across from Bloomingdale’s department store. As earlier reported by The Real Deal, the site 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 handled the exclusive marketing of the property of the three buildings on the south east corner of 59th Street and Third Avenue, which totals 89,000 buildable square feet.

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“The highest and best use of the site would be for a mixed-use development,” Knakal said in a phone interview on Tuesday afternoon. The location has also proven to be “excellent” for condominiums, he said.

Knakal said he foresees that the existing structures at the site will be demolished and a new highrise will be built.

The sale price works out to more than $1,100 per square foot. “By city standards it’s a big number,” Knakal said, but added that the location warrants the price.

Approximately two weeks after the property hit the market – and about seven days after Harry Macklowe had seen the property – the contract of sale was in place.

“Mr. Macklowe moved like lightning,” Knakal said.

Earlier this year, development firm World-Wide Group bought an 11-story commercial building, also across from Bloomingdales, for $37 million.

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