Case Studies

360, 362, 364, 366 & 368 Third Avenue, Manhattan

 

WHOLE IS GREATER THAN SUM OF THE PARTS: Team Effort Results in Highest Value For Three Sellers

 

Property: 360, 362, 364, 366 & 368 Third Avenue, Manhattan

 

Challenge: Coordinate marketing efforts amongst three different sellers to complete an assemblage sale on both an exclusive and off-market basis.

 

Story: First Besen secured the exclusive assignment to sell 360, 362 and 364 Third Avenue between East 26th & 27th Streets.  The three offer a combined total of 34,130 gross square feet and occupy 74’ of frontage on Third Avenue, on a 112’ deep lot.  There are 41,680 square feet of air rights, which factor in to yield 82,810 total buildable square feet.  Soon to follow, another Besen broker exclusively represented the seller of 368 Third Avenue, located two doors up on the same block.  The property contained eight residential apartments, one commercial unit and a store within front and back buildings on a 25’ a 112’ lot. 366 Third Avenue, sandwiched between the other properties, was on the market through a competing brokerage.  That particular owner realized Besen could ultimately offer the best value in light of assignments to sell the neighboring properties and opted to work with us. 366 is a 4-story commercial building housing a Japanese restaurant on a one-year [remaining] lease term, which offered another 27,650 buildable square feet.

 

Results: Besen & Associates completed the sale of all five mixed use properties at 360, 362, 364, 366 and 368 Third Avenue for a total of $49.6 million, which equated to $870 per square foot.  The sale of the properties as an assemblage to a single purchaser resulted in a +15-20% premium to the sellers, as sales of comparable assets were averaging closer to $750/SF. Consisting of 56 apartments and 5 stores and spanning 125 feet along the west side of Third Avenue, the properties were sold to a partnership between Itzhaki Acquisitions and Continental Ventures.  There are over 100,000 square feet of development rights in total, offering future potential for the site.

 

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