Lake Success, New York-based Lalezarian Properties has purchased a development site in the Hudson Yards Special District at 511-515 West 36th Street for $21.25 million, The Commercial Observer has learned.
A six-story, 37,929-square-foot commercial loft building currently sits at the site, but the firm plans to raze the structure and construct a residential rental development across it and adjacent sites that it already owns.
“They preferred to have a larger site and this acquisition adds to the size of their floor plate,” said Eastern Consolidated’s Azita Aghravi, who represented the buyer.
Lalezarian Properties also owns the parcels located between 519 and 525 West 36th Streets, meaning that the property will ultimately run up against a newly created intersection at its border.
“The city is creating a new street there, so this will be a nice corner location for them,” Ms. Aghravi said, adding that real estate holdings in the vicinity of Hudson Yards are currently “a magnet” for investors.
Eastern Consolidated’s Nancy Tran, who represented the seller, National Acoustics, said the site can potentially accommodate a 96,000-square-foot residential development with ground floor retail if the new owner takes advantage of a District Improvement Fund Bonus and Inclusionary Housing Bonus.
“The site is tremendously valuable because of its Hudson Yards location, now an extremely sought-after, rapidly gentrifying Manhattan submarket due to all the new development underway in the area,” she said.
National Acoustics, which specializes in office build-outs, from furnishing to drywall and carpentry to acoustics, was a long-term owner of the property and plans to move its business to Long Island City, which is in the midst of its own real estate boom.
“The best use for the property is to develop it,” Ms. Tran said.