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