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United States Bankruptcy Court SDNY
In Re: 28 W. 36th Street Sole Member LLC, & 32 W. 29th Street Sole Member LLC, – In Re: 24-72229-REG

(i) 28 W. 36th Street Sole Member LLC and (ii) 32 W. 39th Street Sole Member LLC (collectively, “Seller”), as debtor and debtor-in-possession in the chapter 11 cases pending in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy  Court”), Case No. 24-72229-REG (the “Chapter 11 Case”), and LSC West 36 & 39 ST LLC, a Delaware limited liability company (“Lender).

12-story Midtown office building

28 West 36th Street, Midtown, Manhattan, NYC, 10018

  • 12-Story Office Building
  • 58,500 Gross Sq Ft
  • 68,993 Rentable Sq Ft
  • Situated on a 4,096 Sq Ft Lot (50′ x 98.75′)
  • Three-Sided Exposure (North, South & West)
  • Non-Landmark Designated
  • Currently Operated as an Office Building with Ground-Level Retail
  • Positioned for Near-Term Vacancy (Details in Data Room)
  • Located in Midtown South near Bryant Park, Grand Central, Times Square, Penn Station, and major employment centers. The neighborhood is evolving toward a 24/7 live-work-play environment supported by recent rezoning and ongoing investment
  • Transit access includes multiple subway lines (N, Q, R, 1, 2, 3, S, 4, 5, 6, 7, B, D, F, M), plus LIRR and Metro-North connections via major hubs
  • Real Estate Tax Information:
    • 2025/2026 Assessment: ($6,388,650)
    • Tax Rate: 10.76%
    • 2025/2026 Real Estate Tax: $687,547

Investment Highlights:

  • Midtown South Mixed-Use (MSMX) rezoning expands as-of-right development options, including residential as-of-right
  • As-of-right maximum FAR: 15 (commercial) and 18 (residential) with maximum residential ZFA of 88,308 SF
  • Approximately 29,808 SF of remaining development rights (air rights) under current zoning
  • Clear path to vacancy: projected to be 91% leased by end of 2025 with weighted average lease term (WALT) of ~1.8 years; only ~13% leased by late 2027 (assumes completion of current eviction process for one tenant)
  • Business-plan optionality: residential conversion, ground-up residential redevelopment, self-storage conversion, or continued office use
  • Potential eligibility for New York City / State tax abatement programs for qualifying residential projects (including 467-m for conversions and 485-x for new construction)
  • Exceptional transportation access: proximate to Grand Central and Times Square with access to major subway lines, plus LIRR and Metro-North

Zoning & Development Summary:

  • Max Commercial FAR/MAX FZA: 15 FAR/73,590 Sq Ft
  • Max Residential FAR/MAX FZA: 18 FAR/88,308 Sq Ft
  • Remaining Air Rights: 29,808 Sq Ft

$9,000,000 Opening Bid

 

Complete Offering Memorandum Available Upon Competition of this Non-Disclosure Agreement (Click Here)


ONLINE BIDDING ONLY – CLICK HERE FOR ONLINE BIDDING

Bidding is available by computer (PC or Mac Only) or download of the Maltz Auctions App on the App Store or Google Play (Required for tablet and Cell Phone Devices)

  Pre-Registration Required to Bid. You Must send in signed Terms & Conditions of Sale, signed Online Bidding Form and a deposit (cashier’s check only) to be approved for bidding.


Viewing: Available By Appointment – Please Call to Schedule.

Pre-Registration Required to Bid:  Please review the Bid Procedures.

Auction Date: Online-Only Bidding will open Monday, February 9, 2026 at 12:00 noon and is scheduled to close on Wednesday, February, 11 2026 at 12:00 noon  Visit RemoteBidding.MaltzAuctions.com or download the Maltz Auctions App on the Apple Store or Google Play.

 

Terms & Conditions of Sale: Please review the Bid Procedures.

Bidding Process: If a bid is placed with less than one minute remaining, the bidding period will be extended so one minute remains for competing bids to be entered.  If any further bidding occurs, the extension timer will reset to one minute.  Once no further bidding activity occurs, the sale closes when the time runs out.

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The Real Property is being sold “AS IS” “WHERE IS”, “WITH ALL FAULTS”, without any representations, covenants, guarantees or warranties of any kind or nature, and free and clear of any liens, claims, or encumbrances of whatever kind or nature, with such liens, if any, to attach to the proceeds of sale in such order and priority as they existed immediately prior to the Closing, and the sale of the Real Property is subject to, among other things (a) any state of facts that an accurate survey may show; (b) any covenants, restrictions and easements of record; (c) any state of facts a physical inspection may show; (d) any building or zoning ordinances or other applicable municipal regulations and violations thereof; and (e) environmental conditions. By delivering their respective Deposits, all Potential Buyer acknowledge that they have had the opportunity to review and inspect the Real Property, the state of title thereof and laws, rules and regulations applicable thereto, and will rely solely thereon and on their own independent investigations and inspections of the Real Property in making their offers. Neither Maltz, the Chapter 11 Debtor & Debtor in Possession, the Attorney for the Chapter 11 Debtor & Debtor in Possession nor any of their collective representatives makes any representations or warrantees with respect to the permissible uses of the Real Property including, but not limited to, the zoning of the Real Property.  All Bidders acknowledge that they have conducted their own due diligence in connection with the Real Property and are not relying on any information provided by Maltz, the Chapter 11 Debtor & Debtor in Possession, the Attorney for the Chapter 11 Debtor & Debtor in Possession, or their professionals.  The Real Property will be sold subject to any and all violations or conditions requiring corrective action.  The information contained herein was derived from sources deemed reliable, but is not guaranteed.  Most of the information provided has been obtained from third party sources and has not been independently verified.  It is the responsibility of the Buyer to determine the accuracy of all components of the sale and Property.  Each potential bidder is responsible for conducting his or her own independent inspections, investigations, inquiries, and due diligence concerning the Property, including without limitation, environmental and physical condition of the Property.  All prospective bidders are urged to conduct their own due diligence prior to submitting an offer.  Bid rigging is illegal and suspected violations will be reported to the Department of Justice for investigation and prosecution.