Avison Young arranges 99-year ground lease at 301-307 Third Ave. on behalf of Snake River Development

Manhattan, NY Avison Young has arranged a 99-year long-term ground lease at 301-307 Third Ave. on behalf of Snake River Development, who is managed by BNS Real Estate. The value of the long-term lease is estimated at $21.5 million, which equates to $300 per zoning floor area (ZFA), and contains an existing two-story building, with flexibility in development plan for market rate rentals, affordable rentals, or institutional use.

The owner was represented by Charles Kingsley, principal; Neil Helman, principal; Erik Edeen, principal and director of Tri-State Investment Sales; James Nelson, principal and head of Tri-State Investment Sales; and Brandon Polakoff, principal and executive director of Tri-State Investment Sales, all located in Avison Young’s New York City office. The lessee, Naftali, represented themselves.

“Our client had a desire to continue their ownership of this asset at a prominent corner at the confluence of two Manhattan neighborhoods – Gramercy and Kips Bay,” said Kingsley. “This transaction allows them to remove any management burden and the ability to transfer the development risk to another party in exchange for a long-term annuity.”

The corner lot with a combined 172 ft. of frontage along Third Ave. and East 23^rd St. offers flexibility in development along with a desirable location near Madison Square, Union Square, and Stuyvesant Square Parks. Flexibility in proposed development plans allow for a maximum of 72,268 s/f of ZFA as-of-right or 86,721 s/f of ZFA when taking advantage of an inclusionary housing bonus.