Herald Square development site hits market at $42.75 million

TRD New York /
Sep.September 20, 2011 03:58 PM

Massey Knakal brokers from top: John Ciraulo, vice chairman of Massey Knakal; Craig Waggner, director of sales; Jonathan Hageman, sales team manager; and view of 846-850 Sixth Avenue and 1227 Broadway facing east
A 12,260-square-foot lot near Herald Square hit the market with an asking price of $42.75 million, according to Massey Knakal Realty Services, which is exclusively marketing the property.

The triangle-shaped lot, a combination of a four-story commercial building at 1227 Broadway and a parking lot and one-story building at 846-850 Sixth Avenue, comprises the entire nearly 290-foot-long south side of 30th Street between Broadway and Sixth Avenue, along with more than 68 feet of frontage along Sixth Avenue and more than 15 feet of frontage along Broadway.

About 5,060 square feet of the eastern portion of the lot lies in a zoning district that allows for an office, hotel, manufacturing or community facility use with a floor area ratio of 10, according to the listing. The remaining 7,200-square-foot lot allows for a residential, office or retail structure, also with an FAR of 10.

“Overall, the property represents one of the last opportunities to redevelop a unique corner property in The Prime Sixth Avenue corridor leading from Chelsea into Herald Square,” said John Ciraulo, a vice chairman at Massey Knakal. He, Craig Waggner, Massey’s director of sales, and Jonathan Hageman, the company’s sales team manager, are listing the property.

At a total of 122,600 buildable square feet, the asking prices comes out to $348.69 per square foot.

David Schechtman, principal and senior director of commercial brokerage Eastern Consolidated, said the price was about right, though he was not intimately familiar with the property. “It’s a tremendous location, and I would not be surprised to see people bid to the price, and possibly closer to $400 a foot,” he said.

The Sixth Avenue corridor between Madison Square Park and Herald Square, has been teeming with development of late. Last year the 54-story Eventi Hotel opened at 835 Sixth Avenue Near 29th Street and this year the 53-story Continental rental building opened at 885 Sixth Avenue Near 32nd Street. Moreover, construction is ready to begin at the long-disputed 500,000-buildable-square-foot empty lot at 855 Sixth Avenue just north of the Massey Knakal property.

“It’s a fabulous corner,” said Adelaide Polsinelli, associate vice president of investments at Marcus & Millichap, of the new Massey Knakal listing. “It has a lot of retail visibility, and is definitely something that needs to be built — the location is screaming for development.”

The property last changed hands in 1974, public records show, for an unknown price.

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