Avison Young has arranged a 99-year long-term ground lease at 301-307 Third Avenue 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’ of frontage along Third Avenue and East 23rd Street 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-square-feet (sf) of ZFA as-of-right or 86,721-sf of ZFA when taking advantage of an Inclusionary Housing bonus.
