260 W 36th St.
More property details
Features & amenities
Location
BKREA has been exclusively retained to arrange the sale of 260 West 36th Street, a 9-story office building constructed in 1907.
• Location Details:
‣ Situated on the south side of West 36th Street, two blocks north of Penn Station, Madison Square Garden, and the newly renovated Penn District.
‣ Strategically positioned near the Penn District and Hudson Yards, with access to mass transit, dining, shopping, and entertainment options.
• Property Specification
‣ Lot area: ~7,266 SF with 73.58 feet of frontage along West 36th Street.
‣ Total size: 102,611 RSF.
‣ Current zoning: M1-6 in the Special Garment Center District.
‣ Proposed rezoning: Midtown South Mixed Use (MSMX), allowing up to 18 FAR for residential use (inclusive of MIH) and 15 FAR for commercial use.
‣ Development potential: Up to 34 stories and 401,656 SF of total floor area (excluding TDRs).
• Occupancy & Lease Details
‣ Occupancy rate: 59%, with a weighted average lease term of approximately 2.26 years.
‣ Leases include cancelation clauses, providing flexibility for redevelopment or leasing strategy changes.
• Investment Opportunities
‣ Value-Add Opportunity: Renovate and lease the vacant floors to improve occupancy and generate additional income.
‣ Covered Land Play: Collect existing cash flow while planning a potential conversion or redevelopment.
‣ Redevelopment Potential: With a 41% vacancy rate, the property presents a redevelopment opportunity as part of a larger site, potentially including 500 and 516 8th Avenue.
• Development Plans
‣ Multiple schemes developed in consultation with architects and zoning specialists to maximize the property's potential.
‣ Part of the proposed Midtown South rezoning area, unlocking significant development possibilities.
• Neighborhood Demand Drivers
‣ Surrounded by strong demand drivers, including Penn Station, Hudson Yards, and Madison Square Garden.
‣ Walk-to-work convenience for future residential tenants in an area with excellent transit connectivity and abundant amenities.
• Adjacent Opportunities
‣ Along with 260 West 36th Street, nearby properties like 500 8th Avenue present an outstanding opportunity for value-add investors or developers looking to leverage Midtown's growth.
- Value Add Potential: Future investors could renovate and lease up the existing vacancy floors.
- Covered Land Play: There are different strategies allowing investors and developers to earn existing cash flow while going through the planning process for a redevelopment.
- Assemblage of Major Substantial Blockfront Frontage: Along with 260 West 36th Street, 500-516 8th Avenue offers an astounding 197.5 feet along the eastern side of 8th Avenue.
- Ample Transportation Available: Within walking distance to the property are several transportation hubs which service 1,2,3,A,C,E, the LIRR and NJ Transit.
- Favorable Midtown Location: The property is located near several Fortune 500 companies, popular restaurants and retail establishments.
- Multiple Potential Rezoning To Development Schemes: Due to the favorable M1-9A / R10 zoning a developer may have several options of conversions.
- Ability To Deliver Vacant: Cancellation causes are in place in all the leases of 260 West 36th Street, allowing asset to be delivered vacant.