Massey Knakal Sells Mixed-Use Building With Development Potential in Flatiron District
A mixed-use building at 7 West 24th Street, located between Sixth Avenue and Broadway in Manhattan’s Flatiron District, was sold in an all-cash transaction valued at $9,500,000.
The property’s lot totals approximately 2,370 square feet and features 24’ of frontage. Based on the C5-2 zoning and 10.0 FAR, the site can be developed into approximately 23,700 square feet for various uses including residential, hotel, office, retail, community facility, or mixed-use. Currently, the site is improved by a five-story mixed-use building that totals approximately 9,282 square feet, with five residential units and a ground floor commercial unit with a long-term lease in place. The sale price equates to approximately $1,023 per existing square foot, an in-place 3.29% capitalization rate and 21.35 times gross rent roll. As a development site the price equates to approximately $401 per buildable square foot.
The property is located less than one block west of Madison Square Park, adjacent to the new high-end conversion at 10 Madison Square West. The Flatiron District has seen a surge in neighborhood improvements and recent developments, making it one of the most desired areas to live and work in the city. It offers convenient access to almost every subway line as well as the city’s major employment centers including Midtown South
The property was purchased by Mark Geragos, a prominent trial attorney whose client list has included Michael Jackson, Mike Tyson, Chris Brown, and Sean Combs. Geragos is also a legal analyst on CNN’s Anderson Cooper 360, where he comments on high profile legal cases. Geragos has always had a passion for real estate, and in particular, for buildings which are historically significant. Since a young age, he has bought and sold hundreds of properties throughout California and has recently broadened his real estate portfolio to include investments in New York. Earlier this year, Geragos purchased 107 Greenwich Avenue in the Greenwich Village neighborhood. In 2012, he purchased 256 Fifth Avenue as the New York offices of his Los Angeles-based law firm, Geragos & Geragos.
Attorney Tina Glandian, Geragos's longtime partner, represented Geragos as the broker in the transaction. The attorney for the seller was Larry Haber of Abrams Garfinkel Margolis Bergson, LLP and the attorney for the buyer was Yelena Nersesyan of Busson & Sikorski.
“This transaction exemplifies how deep the current buyer pool is for investment properties in New York City. After months of marketing, targeting and negotiating with developers for this site, the eventual purchaser saw it as a solid long-term investment opportunity with an eventual exit strategy of redevelopment. Every day we’re meeting new buyers, foreign buyers and first time buyers searching for wealth preservation,” said Massey Knakal Chairman Bob Knakal, who exclusively represented the seller in this transaction with Vice Chairman John Ciraulo.