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For a buyer seeking a unique New York City real estate opportunity, 316 E. 59th St. presents a rare combination of historic charm and significant development potential. Currently listed for $10 million, this 6,500-square-foot mixed-use building is a turnkey residence with five bedrooms and 3.5 baths, but its real value may lie in its R8/C2-5 zoning and approximately 9,500 square feet of unused air rights, allowing for potential expansion or redevelopment. Its most famous feature is a Juliet balcony that offers an intimate, eye-level view of the Queensboro Bridge's steel trusses.
What is the history of this unique New York City building? Originally constructed in the 1930s, the building’s first and most memorable tenant was a small bakery named "Home of the Gnomes." The bakery featured a storybook façade, complete with a gnome statue perched on the roofline and another by the entrance. This whimsical chapter was short-lived, closing during the economic turmoil of the early 1930s. The narrow brick structure then cycled through various uses, including an exterminator's office and a kitchen showroom, each phase adding a layer to its eccentric history. The building’s unconventional proportions have always set it apart from its Midtown East neighbors.
What are the key features of the residential space? The property gained notable attention in 2015 when its penthouse was listed for rent at $14,000 per month. The residential unit is defined by its soaring 27-foot ceilings and exposed brick walls, creating a feel more akin to a rustic cabin than a typical city apartment. Key amenities include a Vermont Castings wood stove and an open great room. The upper level features the distinctive Juliet balcony, while the rear of the property opens to a private 47-by-24-foot garden, a highly unusual amenity for this area of Midtown.
What does mixed-use zoning and air rights mean for a potential buyer? The property's mixed-use zoning (R8/C2-5) permits both residential and commercial activities, a common classification in New York City that offers flexibility. The term air rights refers to the unused development potential that can be transferred or utilized to construct a larger building on the site. With about 9,500 square feet of available air rights, a new owner has significant options. Based on our experience assessment, the site could be reinterpreted as a contemporary townhouse, a larger residential property, or a boutique commercial concept, making it a long-term investment play.
Conclusion 316 E. 59th St. is more than a historic curiosity; it is a tangible real estate asset with multiple paths to value. The combination of a unique, move-in-ready residence and substantial development potential makes it a standout offering. For the right buyer, the decision will center on whether to preserve its offbeat character or leverage its air rights for a new vision. The building’s enduring charm and strategic zoning present a compelling opportunity in the Manhattan market.
