NEW YORK CITY—The United Charities Board has put 287 Park Ave. South, its historic Gramercy Park building, on the market. The building—which could become residences, office space, retail stores or even a hotel—could command “well-in-excess” of $100 million, Newmark Grubb Knight Frank senior managing director Geoffrey Newman, who is leading the effort, tells GlobeSt.com.
“Toll Brothers recently purchased a vacant piece of land on the same block for $850 per square foot,” he notes on the price. With regard to the building's future, most likely, the building will become a multi-family property—and quite possibly condominiums—but there are other options available to developers, he notes.
“The highest and best use is most likely residential given the current level of pricing for the finished product,” Newman says. “However, as an office building, it could certainly command rents in the mid $60s per square foot and could work nicely as a hotel. Think of the Gramercy Park Hotel and Marriott's conversion of the ClockTower to its Edition brand."
He expects to see certain types of buyers vie for the project. “The most logical investors are prominent residential developers who have done these kind of historic conversions in the past, major office landlords or boutique hoteliers.”
In addition to Newman, NGKF's Mark Weiss, Brian Fennelly, David Noonan, Jennifer Schwartzman and president James Kuhncomprise the listing team.
Built in 1892, the United Charities Building is a nine-story, nearly 110,000-square-foot building. The charities selling the building—the Community Service Society of New York, the Children's Aid Society and the New York Mission Society—will vacate the property after a short-term leaseback.
Adds Newman, “The United Charities Building is a remarkable historic structure with rich architectural detail and unparalleled craftsmanship that has been impeccably maintained to this day.”
The property comes with a storied history. It was developed by philanthropist John S. Kennedy, a member of the fabled Jekyll Island Club; with J.P. Morgan and John D. Rockefeller to house the charities that reside at the location. The building also sits in one of Manhattan's most prosperous neighborhoods—Gramercy Park—home to several high-end residential developments and upscale hotels, and part of the hot Midtown South office district that has attracted major technology and media companies.
"The Toy Building, One Madison, 41 E. 22nd Street and 18 Gramercy Park South all have redefined the neighborhood as the city's premier destination for young professionals seeking the best restaurants, parks, culture and entertainment," says Newman.
Set against this background, the United Charities Building offers a number of redevelopment options. Residential condos in the area recently have sold for between $2,000 and $4,000 per square foot, while pffice rents hit a quarterly high in the fourth quarter in Midtown South at $50.28 per square foot and retail rents generally run between $150 per square foot and $250 per square foot in the neighborhood.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
