Non-profit purchases space at 305 7th Ave - McMahon Services for Children

Real Estate Weekly, Feb 19, 1992

McMahon Services for Children, a not-for-profit social services agency, has purchased 16,200 square feet of space at 305 Seventh Avenue, the 20-story office building at 27th Street that Newmark & Company Real Estate, inc. recently converted to condominium ownership specifically for non-profit organizations.

The agency, which will occupy the building's eighth and ninth floors, is the second not-for-profit organization to commit to space in the building. Services for the Undeserved recently purchased the building's 8,100-square foot 10th floor.

Rudolf Demasi represented McMahon Services for Children, and Barbara Yagoda, vice president of Newmark & Company, represented the conversion's sponsor, 301-5 Seventh Avenue Associates, a New York General Partnership comprised of principals in Newmark & Company and Four Star Holding Company.

Since 305 Seventh Avenue is the only building currently with an approved plan by the Attorney General and is offering 100 percent non-recourse financing directly from the sponsor, a purchaser can avoid going through the complicated and expensive procedures in obtaining the various governmental approvals required to obtain the financing in similar proposed not-profit buildings.

Jeffrey Gural, president of Newmark & Company, said "the offering plan for 305 Seventh Avenue is structured so that condominium unit owners pay approximately the same annual costs to own as they would to rent.

"Non-profits that purchase do not have to worry about future rental increases or real estate tax hikes that may be imposed by the city," he said.

McMahon Services for Children, a contract agency of New York City's Human Resources Administration, is affiliated with the Council of Family and Children Caring Agencies; Catholic Charities of the Archdiocese of New York; the Alliance for Catholic Health and Human Services, and United Way of Greater New York.

Founded in 1919 by the Ladies of Charity, it offers a variety of programs that create family environments in which children can flourish, including foster boarding, adoption, independent living skills and religious outreach.

McMahon Services for Children is currently located at 225 East 45th Street. It plans to relocate to 305 Seventh Avenue in the spring.

PHOTO : Signing up for space at 305 7th Avenue was Mary Ellen McLaughlin executive director of McMahon Services for Children, which has purchased 16,200 square feet of space in the 20-story office building. Newmark & Company Real Estate, Inc. recently converted the building to condominium ownership specifically for non-profit organizations. With ms. McLaughlin are Jeffrey Gural president of Newmark, and Barbara Yagoda, vice president, Newmark, and Rudolph Demasi, who represented McMahon Services.