520 Park Avenue / 47 East 60th Street (Christ Church United Methodist)
Air Rights Sq Ft: 70,659
Purchase Date: February, 2013
Purchase Price: $40.2 MM
Client: Christ Church United Methodist/Grolier Club
Over a fourteen-year period starting in 1999, Tenantwise originated and structured a sale of air rights on behalf of Christ Church and The Grolier Club to Zeckendorf Development. Tenantwise identified the assemblage and procured Zeckendorf Development as the buyer of the co-joined parcels. An appraisal of the air rights prepared by a major New York City appraisal firm valued the air rights of Christ Church at $7MM. After negotiating two extension agreements over the period, which included two recessions, Tenantwise ultimately negotiated the $40.2MM price which produced a $33MM profit over the appraisal. Tenantwise’s negotiating methodology was based on the income approach and the estimated amount of profit the developer would achieve based on the uniqueness of the development site and its location. By utilizing this new paradigm of the income valuation for air rights, instead of using the customary methodology of comparable sales, Tenantwise negotiated the $602 per square foot sales price, the highest price paid for air rights in history at that time.