394 Third Ave

Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of 394 Third Avenue (aka 157-161 East 28th Street), a desirable corner development opportunity located in the burgeoning Murray Hill submarket bordering NoMad and Gramercy. The 145’ of wraparound frontage offers invaluable retail exposure from significant foot traffic on Third Avenue, while also providing the opportunity to create a private residential lobby on the eloquent tree-lined side street. The site’s corner location and position adjacent to a designated landmark to the west benefits a development project with protected light and air on 3 sides of the building, providing optimal floor layouts for prospective developers. 394 Third Avenue is situated within favorable zoning districts that permit the development of a unique mixed-use project. While majority of the site is located within a C2-8 district, a small portion of lot area is located in an R8B zone. With a lot area of approximately 4,375 square feet, applicable zoning permits the as-of-right development of approximately 37,825 buildable square feet. Furthermore, the site can be enlarged by 2.0 FAR through the acquisition of available IHB development rights, which would increase the maximum development potential to approximately 44,602 buildable square feet. Lastly, there are several expansion possibilities including the acquisition of neighboring properties to the north on Third Avenue and air rights from adjacent properties. In its present state, the subject property contains 3 entirely fair market, low-rise apartment buildings containing 3 ground floor retail units and 7 residential units above. As all residential leases expire by June 2017 and the last commercial lease expiring in December 2017, prospective developers will benefit from vacant possession in the near term while also capitalizing on significant cash flow during planning and pre-construction stages. The properties currently generate a net operating income of approximately $370,017 annually. Not only is financing presently much more obtainable for reasonably sized projects, but 394 Third Avenue represents a boutique mixeduse development opportunity that will not be competing in Manhattan’s over-saturated ultra-luxury condominium market. Many recent projects surrounding 394 Third Avenue are driving demand for the submarket that is in the midst of a major transformation. Overall, the subject property presents a tremendous development opportunity within one of Manhattan’s most rapidly growing submarkets.