Massey Knakal brokers $71.9 million sale of 1205-1225 Broadway

A development property at 1205-1225 Broadway, located in Herald Sq., was sold in an all-cash deal valued at $71.9 million. 1205-1213 Broadway is a three-story commercial office building that has 33,189 s/f with 78,561 s/f of unused air rights. The total developable footage of this property is 111,750 s/f. 1215-1225 Broadway is a nine-story commercial office building with 91,936 s/f and 46,314 s/f of unused air rights. The total developable footage of this property is 138,250 s/f. Given the 25,000 s/f combined footprint, 10.0 FAR, and 250,000 total buildable s/f, the properties have potential as a redevelopment opportunity to hotel with retail. The buildings were 25% occupied at the time of sale; however all of the remaining leases are expiring within the next two years allowing a developer a timely project. "The purchaser is a prolific developer of franchised hotels in N.Y.C. having developed millions of s/f in hotels, office and residential over the past 10 years with. They are planning to develop 1,000 rooms every year for the next 3 years, a trend in optimism we've been seeing lately as lenders seem to be returning to the marketplace for the hospitality asset class. Additionally, RevPAR (revenue per available room) and ADR (average daily room rate) are both expected to increase market wide by double digit percentages well beyond 2013. We believe this sale is indicative of the Manhattan hotel industry in general and the NoMad neighborhood specifically as an attractive market. We anticipate the trend in new hotel development to continue as N.Y.C. will remain a popular tourist and corporate destination in the coming years with over 50 million visitors expected in 2012 alone," said Massey Knakal chairman Robert Knakal who exclusively represented the seller in this transaction with vice chairman and partner, John Ciraulo, director of sales, Craig Waggner and sales team manager, Jonathan Hageman. Daniel Rahmani and Ebi Khalili of Venture Capital Properties represented the purchaser. Massey Knakal specializes in the sale of investment and user properties in the New York Metropolitan area. Since 1988, our agents have closed over 4,000 transactions having a market value in excess of $14 billion.