Highlights
• 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.
Description
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.
Listing Details
- Tenancy
Multi
- Space Type
office
- Sub Category
executive
- Sale Type
Development Sale
- Date Listed
1/14/2025
Property Specifics
- Property Name
260 W 36th St.
- No of Stories
10
- Year Built
1907
- Building Size
102,611 SF
- Lot Size
7,266 SF
- Year Renovated
1986
- Zoning
M1-6 / GC
- Occupancy
59%