A New Development Site Advisors® Client & Transaction Story:

We just sold 3816 9th Avenue between W 204th Street & W 205th Street in the Inwood neighborhood of Northern Manhattan for $15,800,000 in an all-cash transaction. The lot is a blockfront roughly 200’ x 100’, 20,000 sf lot currently improved by a single-story Church/School building owned by the Manhattan Bible Church of New York City (MBC).

The property is located in an R8A, C2-4 Zoning District within the Special Inwood District; which is also a Mandatory Inclusionary Housing Area; allowing for the future development of roughly 144k sf. MBC, around for 50-years, purchased this building in 1983.

How did we help?

Manhattan Bible Church, deeply rooted in Inwood, faced the challenge of maximizing the potential of an aging property. They engaged us to navigate this transaction and secure a development partner to meet their needs for a new facility and financial independence.

Challenges:

• Finding the Right Developer: Identifying a developer who could offer high value and had experience with nonprofits, while committing to build a new sanctuary and gym space.
• Tax Abatement Constraints: Addressing the church's expiring tax abatement and finding a developer who could manage the project without incurring new taxes.
• Defining Space Requirements: Ensuring the new facility met the church's needs, which required clear planning and understanding of their space requirements.

Solution:

Based on the needs of the Church, we brought in Matter Real Estate, an Owners Representative & Consulting Firm, and together we conducted a thorough evaluation of the church’s needs and crafted a surgical Request for Proposal (RFP) to qualified and experienced developers. This approach ensured developers understood the project’s scope and the Church’s specific needs.

Implementation:

We marketed to a pre-qualified list of developers with experience in nonprofit projects. The RFP detailed the church's requirements, including a new gym and sanctuary space. In our selection process, we meticulously reviewed various proposals that were submitted from both nonprofit and for-profit developers.

Results:

We facilitated a partnership between a nonprofit and a for-profit developer to create much needed affordable housing while also building a 10,000-square-foot sanctuary and gym for the church. Proceeds from the transaction were allocated to renovating the church’s existing school building, ensuring their continued community presence.

Conclusion:

This case study highlights our expertise in managing complex real estate transactions with regulatory constraints and community needs. Our strategic planning and expert consulting ensured a successful outcome, preserving the church’s legacy and supporting its ongoing role in the Inwood neighborhood.

Client Testimonial:

“On behalf of the Manhattan Bible Church, we thank you all for making this sale possible. We thank you for your persistence and dedication to excellence at every level. When I inform the church of the sale officially, I will also mention them of the stellar team God blessed us with to make this transaction possible.” - Pastor Jones, Manhattan Bible Church

Development Site Trades - 10 Highlighted Sales

1. 3816 9th Avenue, Inwood Manhattan - Sold by DSA! - Sold for $15,800,000 - $110/ZFA - Lot Size: 200’ x 100’ - 20,000 sf lot - Zoning R8A, C2-4, MIH - ZFA: 143,878 sf- Existing Single-Story Church Building/School
2. 26-24 3rd Street, Astoria Queens - Sold for $2,900,000 - $212/ZFA - Lot Size: 50’ x 124’ - 6,200 sf lot - Zoning: R6 - ZFA: 13,640 sf - Existing 2-Family Home
3. 105 Underhill Avenue & 326 St Marks Avenue, Prospect Heights Brooklyn - Sold for $11,650,000 - $318/ZFA - Lot Size: 18,138 sf Irregular Lot - Zoning R6B - ZFA: 36,636 sf - Existing Garage Buildings
4. 43-57 West Street & 2-24 Oak Street, Greenpoint Waterfront Brooklyn - Sold for $174,100,000 - $174/ZFA - Total Lot SF: 3.98 acres, 178,390 sf Lot- Zoning: R6, R8, C2-4 VIH - ZFA: 1M SF - Existing Industrial Vacant Land
5. 141 Sherman Avenue, Inwood Manhattan - Sold for $5,200,000 - $118/ZFA - Lot Size: 100’ x 110’, 11,000sf lot - Zoning: R7A, C2-4 - ZFA: 44,000 ZFA - Existing 1-Story Retail Building
6. 14 Powers Street, Williamsburg Brooklyn - Sold for $5,010,000 - $443/ZFA - Lot Size: 51.5’ x 100’ , 5,150sf lot - Zoning: R6B, R6A, VIH - ZFA: 11,300 sf - Existing Mixed-use Building
7. 246 W 18th Street, Chelsea Manhattan - Sold for $10,500,000 - $378/ZFA - Lot Size: 50.58’ x 92’, 4,650 sf lot - Zoning: C6-2A, R8A equivalent - ZFA: 27,769 sf - Existing Mixed-use Building
8. 447-449 E 166th Street & 1103, 1109,1091,1097 Washington Avenue, Claremont, Bronx - Sold for $17,555,000 -$121/ZFA & $82/Max ZFA- Zoning: M1-1, R7-2, MX-7 - 7-Lot Land + Air Rights Assemblage - 33,877sf Zoning Lot - 14,631 sf Lot
9. 2111 White Plains Road, Bronxdale Bronx - Sold for $7,900,000 - $77/ZFA - Lot SIze: 75’ x 126’ - Zoning: C4-4 - Filed Plans ZFA: 102,106 sf - Existing Vacant Lot
10. 36-31 31st Street, Long Island City Queens - Sold for $3,400,000 - $159/ZFA Zoning: M1-2/R6A & M1-2/R5B: Filed Plans ZFA: 21,383 sf - Existing Vacant Lot

Financial Market Snapshot:

• Federal Prime Rate: 8.5%
• Secured Overnight Financing Rate (SOFR): 5.34%
• United States Federal Funds Rate: 5.5%
• United States Annual Inflation Rate: 2.89% (down from 2.97% last month)
• US 1-Year Treasury Rate: 4.50%
• US 2-Year Treasury Rate: 4.05%
• US 10-Year Treasury Rate: 3.89%
• Treasury Bill Auction Rates:
• 4-Week Term: 5.285%
• 8-Week Term: 5.19%
• 17-Week Term: 4.99%
• 26-Week Term: 4.795%
• 52-Week Term: 4.255%
• US Bonds:
• 20-Year Bond: 4.46%
• 30-Year Bond: 4.314%
• Mortgage Rates:
• 30-Year Fixed Rate: 6.58%
• 15-Year Fixed Rate: 5.98%
• 5-Year ARM: 6.29%
• Ground Up Construction Rates: 8.5%+
• Hard Money Lending Rates: 11%+
• Highest Interest Rate for Bank Savings Account: 5.35%