Chairman Robert Knakal of Massey Knakal Realty Services recently noted that “the current building and land sale market is fantastic.” He added, “What an incredible time to sell, with supply very limited and great demand.”

Few people realize that one class of the most active sellers in this bearish real estate market is not-for-profit organizations. Leaders of these organizations are putting pressure on nonprofits to take advantage of the record building and land prices. The proceeds realized by the sale of these assets, many of which may be underutilized, aid the organization’s cash flow and can create a sizeable endowment.

One organization that has benefited from this record sales market is the New York chapter of the American Red Cross. Two weeks ago, it sold its headquarters at 150 Amsterdam Ave. between 66th and 67th streets to A. & R. Kalimian Realty for $72 million. As reported in the press, the New York City Opera is in negotiations to build a new home on the site in a mixed-use residential tower that would include luxury residential condominium apartments.

Last month, the Order of Franciscans of the Holy Name Province entered into a partnership with Sidney Fetner Associates and the Durst Organization to build a 58-story mixed-use tower at 125-131 W. 31st St. Three floors of the tower will house operations and serve as a residence for St. Francis of Assisi parish. A total of 11 floors will serve as the new corporate headquarters for the New York division of the American Cancer Society and accommodations for the Society’s Hope Lodge, which provides temporary houses for cancer patients and members of their families. According to the trade, the West 56th Street headquarters of the society, located between Fifth and Sixth avenues, will be sold and will fetch a significant amount, which will pay for the new facility as well as provide funds for an endowment.

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NYU Downtown Hospital is the owner of a parking lot site adjacent to its facility on Beekman Street in Lower Manhattan. Earlier this year, the hospital announced plans to sell the site to FC Beekman Associates LLC, an entity owned by Forest City Ratner Company, for $84 million. Early next year, construction is planned for a 53-story, 330,000-square-foot, mixed-use condominium building. It will house 25,000 square feet of hospital office space, 550 rental and condominium apartments, and retail and underground parking.

The New York College of Podiatric Medicine is the nation’s oldest and largest college of podiatric medicine. For more than 90 years, the college has been located at 1800 Park Ave., which is off the corner of Park Avenue and 124th and 125th streets. Last year, the college agreed to lease its parking lot to 1800 Park Avenue LLC, which planned to construct a 585,000-squarefoot mixed-use development including a Marriott Courtyard Hotel, office space, ground-floor retail, and below grade parking. Last month, the Planning Commission recommended the City Council approve a 42-story, mixed-use tower incorporating a three-level below-grade parking garage and a residential cooperative component in the plans.

As detailed in the February issue of Podiatry Management, the tenant has agreed to provide to the college, at no cost, a 25,000-square-foot classroom and-office facility in the new tower. The land lease between the college and the developer will provide the school with $500,000 in annual income and a 14% equity interest in the property, as well as income from hotel and commercial space.

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This year, North General Hospital celebrated its 25th anniversary. The hospital is the only private hospital in Harlem. The hospital is at 1879 Madison Ave., between 121st and 122nd streets. A partnership including North General Hospital, Danforth Development Partners LLC, and Plaza Construction plans a mixed-use condominium development. The project will include below-grade parking for the hospital and community, a 40,000-squarefoot community space and it may include the Helene Fuld College of Nursing and residential condominiums.

On August 3, Beth Israel Medical Center closed its 200-plus-bed Singer Division located on 170 East End Ave. at East 87th Street. Garden Homes Development paid approximately $170 million for the site, including two adjacent apartment buildings at 530 E.88th St. The sales price of $620 a developable square foot represented the second-highest purchase price per developable square foot in Manhattan. Garden Homes plans to raze the hospital site and build a luxury residential condominium.

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The Cooper Union for the Advancement of Art acquired a parking lot at 26 Astor Place (also known as 445 Lafayette St.) in 1967. Last year, the Related Companies entered into a 99-year lease with the college, providing the college with an upfront payment of $11 million for rent. Last month, the Related Companies opened the sales office of its new 39-unit residential cooperative apartment building at the site.

In September 2002, the United Federation of Teachers sold its headquarters at 260 Park Ave. South and two additional buildings at 48 E. 21st St. and 41 E. 21st St. for $63.6 million. According to published reports, more than 50% of the 110 condominiums have been sold at the tower. Elad Properties, which purchased the Plaza last month, is in the process of renovating the building at 48 East 21st St. into 43 luxury condominium residences.

In June 2002, Elad purchased the former headquarters of another not-for-profit, the Board of Jewish Education at 426 W. 58th St. Since the date of acquisition, they have added six floors to the building and are converting it into 16 luxury condominium apartments.

The New York Sun has learned that a major not-for-profit organization is in the process of retaining an exclusive broker to sell its headquarters on First Avenue near the United Nations. According to the trade, the building would be razed to make way for a luxury condominium. The projected sale price for the site is in the range of $75 million, at a minimum of $300 a developable square foot.

The Sun has also learned that a number of churches in Manhattan are in negotiations with real estate developers to sell their in-air rights. These air rights enable a developer to increase the overall size of a new development.

It is a very prudent time for these not-for-profits to sell their under-utilized assets, which they have owned for many years. These organizations do not pay taxes on the profits from the sale of the property. Additionally, many of the locations, which have served the organization for many years, often fail to meet the space requirements to help the organizations operate efficiently. Today is the appropriate time for the leadership of not-for-profits to take advantage of this record-high real estate marketplace and review the possibility of selling underutilized real estate.

Mr. Stoler is a television broadcaster and vice president with First American Title Insurance Company of New York. He can be reached at mstoler@nysun.com.