Landon M. McGaw, managing director at Massey Knakal, tells GlobeSt.com that the firm is selling the property for a development group he declines to name. However, he says the seller was unable to get financing to develop the site, which has already been approved for 200 residential units in a 20-story tower along with 360 parking spaces. The parcel offers 199 feet of frontage along 54th Street and 150 feet of frontage along 53rd Street. No asking price has been established; instead, the parcel will be sold in an open auction, McGaw says.

Although the assignment was given only a week ago, McGaw reveals that a number of parties have expressed interest in bidding on the site. "It's a strategic location, with phenomenal views," he says.

Most likely the site will be developed as a rental property, not for-sale condos, McGaw states. "At the height of market, everybody was underwriting everything on a condominium sell-off basis," he says. "Now the underwriting is more reflective of residential rental, which is where the value lies. Also, we are speaking to a lot of operators who own apartment buildings and do a little development that are looking to build residential rentals, put permanent financing on it and own the building long term."