Sam Chang in Contract for Site Next to R/GA Buy [Updated]
Lauren Elkies Schram Dec. 1, 2014, 1:22 p.m.
McSam Hotel Group‘s Sam Chang is in contract to buy the industrial loft building adjacent to global digital advertising agency R/GA‘s home, which the hotelier picked up a couple of months ago, Commercial Observer has learned.
Mr. Chang went into contract to purchase 338-340 West 39th Street between Eighth and Ninth Avenues. He is buying the 45,717-square-foot site, which includes a 90-percent occupied 12-story commercial building, for $22.5 million, according to a source with intimate knowledge of the deal.
Current zoning allows for development of approximately 59,244 square feet, according to marketing materials from Massey Knakal Realty Services. The site is being marketed by Robert Knakal of Massey Knakal. There were no other brokers involved in the deal. Mr. Knakal could not be reached for comment. The owner is listed in property records as Caporal Company, a Pennsylvania limited partnership.
In October, Mr. Chang closed the $112 million purchase of the two-story, 20,000-square-foot 350 West 39th Street from Robert Greenberg, R/GA’s founder, chairman and CEO, as CO previously reported. Mr. Chang has the ability to build up to 300,000 square feet at this site.
R/GA is moving to 173,000 square feet on the entire 12th floor and part of the 11th floor at Brookfield Property Partners‘ Five Manhattan West at 450 West 33rd Street, as was previously reported.
Mr. Chang said the contract was signed in September.
Update: This story was edited to reflect that Sam Chang said the deal was signed in September.