Development Site Sale Allows for MXD Build

NEW YORK CITY-Manhattan-based Orange Management purchased a development site consisting of two parcels located on the southeast corner of 14th Street and Third Avenue on the border of the East Village and Union Square here for $17.5 million. The seller was Danrose LLC and 123 Third Avenue Realty LLC.

Development site parcel

Michael Forrest, David Shorenstein and Peter Vassiliou, senior associates in Marcus & Millichap Real Estate Investment Services, represented the seller. “This was a very difficult transaction for Marcus & Millichap to negotiate,” explains Forrest. “In fact, a number of banks backed out of this transaction before previously scheduled closing dates.”

Shorenstein tells GlobeSt.com that the sale was delayed for about a year due to the bank withdrawals, which he attributes to the current credit market. He further notes that there was tremendous interest in the parcels. “There was a lot of competition.”

Bids were originally due by Feb. 17, 2006, GlobeSt.com learned from the marketing brochure. “Eventually, we were able to broker a sales price that satisfied the buyer, seller and the lender,” Forrest says. “Given the current state of the credit markets, this sale is a testament to the buyer’s creativity and persistence in securing favorable debt and equity terms in this tumultuous market.”