The Reel

Follow us:

A blog for breaking sales and neighborhood real estate news.

Since January of 2010, the distinction for Manhattan’s (south of 96th Street) lowest sales price per square foot was the sale of 14 commercial condominiums at 226-40 East 38th Street. New York University’s Langone Medical Center picked up these units late last year for a bargain price of $174/SF. This equated to a total sales price of $49,700,000 for 285,000 rentable square feet. Estimating a conservative land value, the price is less than a third of the replacement cost.

NYU bought the units for their short-term patient care, offices, and research facilities. The center anticipates growth in those areas, along with its department of dermatology and cancer center. The hospital raised a total of $500 million from 17,000 donors in 2008, including a $100 million gift from Kenneth Langone, for whom the center will be named after.

On average, Manhattan commercial condos sold for $850/SF in 2010; however many sold for well below $400/SF offering tremendous value. The average was artificially inflated due to many sales in Chinatown for over $2,000/SF; these sales are attributed to the fact that many of these buildings act more like retail on multiple levels.

Real more of James Nelson's blog at NYInc