“Hudson Yards is the largest private development ever undertaken in New York City,” says Koicim. “The area was rezoned in 2005 and allows for approximately 26 million square feet of new office development, 20,000 new apartments, 2 million square feet of retail and 3 million square feet of hotel space.”

“The sellers are a private family that decided to pursue a 1031 tax deferred exchange through Marcus & Millichap's NNN pro group,” says Kunofsky. “The family was able to diversify and attain a much higher current yield by acquiring multiple net- lease properties.”

A six-story, 250-space, 53,172-square-foot parking garage currently occupies the space. Chang purchased the long-term triple-net lease on the site from Peach Parking Corp. That lease would have expired in February 2030.

Over in Midtown, between Fifth and Sixth avenues, Chang's new property is a five-story, 25-foot-wide, elevatored loft/office building which includes 15,000 square feet of unused air rights and a total of 25,000 buildable square feet It was delivered vacant upon the sale.

Eastern Consolidated represented both side in the transaction. Chang was aided by Alan Miller, principal and executive managing director, while brokers David Schechtman, principal and executive managing director, as well as Steven Zimmerman, associate director did the deal for the seller.

Elvee Rosenberg, a beading company that supports garment manufacturers, had owned and occupied the property since the 1980s, but no longer required the Midtown space. Through his McSam Hotel Group, Chang plans to convert the property into a boutique hotel.

“Rarely do full elevator buildings with immediate redevelopment possibilities and a unique set of competitive advantages come to market in Midtown,” says Schechtman. “Elvee Rosenberg was able to monetize a building that no longer suited its business model, and Sam Chang is now perfectly positioned to deliver another hotel in a great location.”