41 W 36
A boutique full-floor condominium redevelopment in Midtown South Manhattan — steps from Herald Square, Bryant Park and Penn Station. Engine-validated base case: ~31.6% levered IRR, ~$8.85M net profit on a comp-defensible underwrite.
Sponsor track record: 2160 Broadway (Manhattan, $42M sell-out) · 53 Prospect Park SW & 249 18th St (Brooklyn, completed) · ground-up + redevelopment in NYC
The Opportunity
Acquire a 1,975 sf Midtown South lot (existing 6-story building, 41 West 36th St) at a land basis of $6.2M and develop a slender boutique condominium — ten full-floor residences, a duplex penthouse with private outdoor space, and ground-floor retail (~18,000 buildable sf, ~13 floors). The full-floor format commands a premium in this submarket: one private elevator landing per home, no shared corridors. Underwritten at a comp-defensible $2,000/sf on closed Midtown South sales — not the top of the range.
Sponsor Track Record
The development partner is building 2160 Broadway (Manhattan, $24M cost / $42M sell-out at ~$2,000/sf) and has delivered completed condos in Brooklyn at 39–53% ROI. Same playbook, proven in Manhattan.
Strong project returns
On a full monthly cash-flow basis the project clears ~31.6% levered IRR and 42% ROI on cost — above a 25% target — at the comp-defensible $2,000/sf base. The land is the negotiation lever (see Risks).
Honest downside
Even at a bear $1,750/sf (below the closest comps) the project still nets ~$5.7M. Pricing, hard cost and the residential zoning path are sensitized openly — nothing is presented as confirmed that isn't.
By the numbers
Twelve metrics that define the deal — from total project cost to target IRR. Numbers are pulled from the v3 investment memo.
41 West 36th Street, Midtown South
In the heart of Midtown South, between Fifth Avenue and Avenue of the Americas — one of Manhattan's most transit-dense, deepest condo-buyer submarkets.
Heart of Midtown South
Between Fifth Avenue and Avenue of the Americas. Herald Square (B·D·F·M·N·Q·R·W) one block south; Penn Station, Bryant Park, the Empire State Building and Macy's all within a few minutes' walk. One of the most transit-dense blocks in Manhattan.
Walk/Transit Score — Herald Square node; verify exact scores at address level
Why this submarket
Midtown South / NoMad / Murray Hill is among Manhattan's deepest condo-buyer pools. Closed new-development comps within ~0.5 mi (The Bryant, Madison House, Rose Hill, 277 Fifth) trade at $1,734–$2,640/sf. A boutique full-floor product is positioned at the realistic middle of that band, not the tower-premium top.
The Building
A slender boutique condominium: ~18,000 GSF over ~13 floors — ten full-floor residences, a duplex penthouse with private outdoor space, and ground-floor retail. One home per floor, with a private elevator landing.
- Type
- Boutique condominium — redevelopment
- Address
- 41 West 36th Street, NY 10018
- Lot Area
- 1,975 sf · 20 ft × 98.75 ft
- Existing building
- 6 stories · ~11,280 sf · built 1935
- Program (modeled)
- ~18,000 GSF · ~13 floors
- Units
- 10 full-floor + 1 duplex PH + retail
- Sellable residential
- 13,400 sf · ~1,100 sf / floor
- Ground retail
- 1,300 sf
- Zoning (base)
- M1-6 · residential via rezoning / conversion
- Proposed rezoning
- M1-9A / R12 · Resi FAR 18 · 35,550 sf max
- Block / Lot
- Block 838, Lot 20 (BBL 1-838-20)
- Air rights (proposed)
- ~24,270 sf — saleable / upside
How investors get paid
A clean three-step waterfall, a 60/40 LP-favored split, and a 25% target IRR for LP.
Repay senior debt
Construction loan and bank obligations cleared first from sales proceeds.
Return LP capital + preferred (8%)
Limited Partners receive principal and an 8% preferred return before GP promote.
Promote split 70 / 30 over the pref
Residual profit above the pref splits 70% LP / 30% GP (illustrative — to be set in the Operating Agreement).
LP capital and the 8% preferred return are paid before the GP earns promote. Base-case underwrite returns ~1.59× equity and ~31.6% levered IRR over ~39 months. Peak equity drawn is ~$11.1M (sales proceeds recycle the rest). The exact promote and pref mechanics are being formalized in the Operating Agreement.
Footnote: the capital structure (LTC, pref, promote tiers, GP co-invest) is illustrative and being formalized in the Operating Agreement / PPM. The land-residual screen indicates the $6.2M asking is rich vs intrinsic land value — see Risks. Investors should review the final documents before committing capital.
What if the market moves?
Drag the slider to model net profit at different residential sale prices. Base is $2,000/sf — the middle of closed Midtown South comps. Even at a bear $1,750/sf the project still nets ~$5.7M.
Closed comps — within 1–3 blocks
All figures below are recorded closed sales, not asking prices. Sources: Redfin, ACRIS.
| Building ↕ | Unit ↕ | Size (sf) ↕ | Sale Price ↕ | $/sf ↓ | Closed ↕ |
|---|---|---|---|---|---|
| The Bryant · 16 W 40th St | 28B | 1,882 | $3,904,369 | $2075 | Jan 2026 |
| Madison House · 15 E 30th St | 21A | 938 | $1,925,000 | $2052 | May 2024 |
| Rose Hill · 30 E 29th St | 8C | 1,355 | $2,719,592 | $2007 | Feb 2024 |
| The Bryant · 16 W 40th St | 20C | 1,329 | $2,623,500 | $1974 | Oct 2025 |
| The Bryant · 16 W 40th St | 24D | 1,067 | $1,850,000 | $1734 | Jun 2025 |
| 277 Fifth Ave | 6A | 1,304 | $2,240,150 | $1718 | Jul 2025 |
| 30E31 · 30 E 31st St | 37 (full-floor) | 1,677 | $2,755,000 | $1643 | Oct 2024 |
| 30E31 · 30 E 31st St | 18 (full-floor) | 1,677 | $2,300,000 | $1372 | Sep 2025 |
| Average $/sf (excl. outliers) | ~$1372 | ||||
Penthouses trade $1,300–$1,535/sf · First-floor units $1,035–$1,140/sf · Our target $1,200/sf average is mid-range, not optimistic.
Per-floor pricing
Base underwrite holds residential at a blended ~$2,000/sf — the realistic middle of closed Midtown South comps ($1,734–$2,640/sf), not the tower-premium top. New-construction finishes typically command a modest premium over 5–8-year-old resale comps; we do not rely on it. The $/sf is on a sellable (interior) basis.
24-month path to exit
Phase 1 — Due Diligence
Zoning counsel opinion (residential path), Phase 1/2 environmental, title, architect test-fit, land negotiation.
Phase 2 — Land Close
Acquisition closed and recorded.
Phase 3 — Plans, Permits, Offering Plan
DOB filing, NB/Alt, condo Offering Plan filed with NY AG (required before sales).
Phase 4 — Construction
~18 months active build (demo + ground-up slender tower).
Phase 5 — Pre-construction Sales
Contracts signed with deposits during construction.
Phase 6 — TCO + Final Closings
Certificate of Occupancy, unit closings, LP payouts. ~39-month base cycle.
Where the money goes
Who's building this
The development partner builds ground-up and redevelopment condominiums across Manhattan and Brooklyn. Identity is disclosed to qualified investors under NDA. Below are representative projects — including a Manhattan condo currently selling out at ~$2,000/sf, which directly supports this site's pricing assumption.
2160 Broadway
Manhattan, NY — under construction
- Sellable Area
- 21,000 sf
- Land Cost
- $8,500,000
- Construction
- $11,300,000
- Total Project Cost
- $24,000,000
- Sell-out @ $2,000/sf
- $42,000,000
- Projected Profit
- $16,000,000
53 Prospect Park SW
Brooklyn, NY — completed
- Sellable Area
- 6,100 sf
- Land Cost
- $2,300,000
- Construction @ $350/sf
- $2,600,000
- Total Project Cost
- $6,400,000
- Gross Sales @ $1,600/sf
- $9,800,000
- Net Profit
- $3,400,000
249 18th Street
Brooklyn, NY — completed
- Sellable Area
- 7,300 sf
- Land Cost
- $2,900,000
- Construction @ $350/sf
- $2,900,000
- Total Project Cost
- $7,600,000
- Gross Sales @ $1,450/sf
- $10,600,000
- Net Profit
- $3,000,000
Additional Manhattan ground-up / redevelopment projects at 16 West 18th and 21 West 17th (completed). 41 West 36th continues the same Manhattan playbook: slender boutique product, tight cost control, full sell-out.
Verify on ACRIS / ZoLa ↗How your capital is protected
Capital returned first
Per the waterfall, senior debt is cleared, then LP capital and an 8% preferred return are paid before the GP earns any promote.
Contingency + conservative leverage
10% hard-cost contingency is in the budget, and debt is sized at a conservative 60% LTC on construction (land funded with equity) — not the 80% the broker deck assumed.
Comp-defensible pricing
Base sale price ($2,000/sf) sits in the middle of closed Midtown South comps, not the top. The bear case ($1,750/sf) is still profitable (~$5.7M).
LLC structure
Investors enter as individuals or via their own LLCs/trusts. Liability is limited to invested capital. Tax pass-through via K-1.
Land price is the lever
The land-residual screen values intrinsic land near $3M vs the $6.2M asking. Negotiating the basis down materially lifts returns — and is a precondition we underwrite toward.
What could go wrong
Real estate development carries real risk. Below is a candid list of what could affect outcomes, and how we mitigate each. Most sponsors hide this section — we put it on the front page.
Several items require confirmation before any LP commits capital: (1) the residential zoning path (rezoning vs conversion) — zoning-counsel opinion; (2) achievable height / floor count; (3) construction scope behind the $450/sf figure; (4) broker-confirmed closed comps for final pricing; (5) the land basis negotiation; and (6) the full capital structure (LTC, pref, promote, fees) in the PPM / Operating Agreement. We refuse to oversell — these are flagged, not hidden.
Investor questions
29 questions — confirmed, pending, and one notable caution. We mark each so you know what's already on paper and what's still in the Operating Agreement queue.
Engine-validated base case (comp-defensible $2,000/sf residential): ~$8.85M net profit, 42% ROI on total cost, ~31.6% levered IRR, 1.59× equity multiple over a ~39-month cycle. These come from a full monthly cash-flow model, not a back-of-envelope.
Documents
First three documents are available after email capture. PPM, Operating Agreement, and detailed financials require NDA and accreditation check.
How to invest
Request memo & deck
20-min intro call with sponsor
Review NDA-gated documents
Q&A round + diligence
Sign Subscription, wire to escrow
Talk to us
The form on the right is the canonical channel — submissions land instantly with the sponsor.
20-min intro with the sponsor — we'll walk through the deal and answer questions. Tick the box in the form below.
Sponsor / GP
Midtown South, Manhattan, NY