The Sweet Deal: How Cookies Helped Build a Commercial Real Estate Empire
Freshly baked cookies aren’t just a delightful treat; they can also create unexpected business opportunities. This was the case for Michael Kirchmann, founder and CEO of GDSNY, when a chance encounter involving cookies led to a pivotal real estate deal in New York City.
A Fortuitous Meeting
In 2010, three years after establishing GDSNY as a development firm, Kirchmann aimed to secure his company’s first property: a church located at 177 Franklin Street in Manhattan. The church’s priest had engaged with several large corporate developers, making the competition particularly fierce. Despite lacking sufficient funds at the time, Kirchmann invited the priest to his home for tea, hoping to discuss GDSNY’s vision for redeveloping the church into office space.
By a stroke of luck, Kirchmann’s children were busy baking cookies during this meeting. When his daughter presented the priest with one, he accepted it enthusiastically. This small gesture seemed to have a large impact. When Kirchmann inquired why he chose to proceed with their deal despite a lower offer from other developers, the priest explained, “You bring me into your home, you offer me tea, your kids offer me cookies, I’m a priest, I’m in the family business, and that’s who I want to be in business with.”
The Impact of the Deal
This initial agreement set a robust foundation for GDSNY. Kirchmann explained, “We did the deal, which turned out to be a fantastic deal. We made a comfortable profit on that, and it set us up to do deals moving forward.” Following the purchase, the building was transformed into an office space and eventually sold to Tom Kartsotis of the Bedrock Group, becoming the Shinola headquarters, which still houses a Shinola store today.
Evolving Focus and Projects
In a recent interview with Commercial Observer, Kirchmann reflected on GDSNY’s trajectory since that initial deal. The firm transitioned predominantly to condominiums from 2012 to 2020, achieving record sales at their project on 25 Mercer Street in SoHo. Kirchmann noted an exciting partnership with Swedish company Corem, through which they developed properties like 1245 Broadway and 28&7, and are now working on another project along Park Avenue.
Design Philosophy and Project Focus
Kirchmann emphasized GDSNY’s commitment to high-quality design, likening their approach to that of Apple, stating, “We’re designing products the same as Apple. Our products are just a whole lot bigger.” He articulated that the firm’s aim goes beyond mere construction; it involves creating beautiful spaces that resonate with potential buyers and tenants.
The Shift to Renovation
Given New York City’s limited vacant land, Kirchmann acknowledged the complexity of ground-up development, a challenging undertaking considering the vast number of existing buildings in Manhattan. Even so, GDSNY remains dedicated to the dual approach of both new construction and renovating existing properties, with ongoing projects like the renovation of the Metropolitan Tower at 142 West 57th Street. This project aims to revamp the building’s lobby and add amenities to enhance tenant experiences, focusing on creating inviting environments that motivate employees to return to the office.
Forward-Thinking Office Development
GDSNY maintains its emphasis on office development, driven by Kirchmann’s extensive experience in the sector. With evolving demands for modern Class A office spaces, GDSNY aims to incorporate innovative designs that merge functionality and aesthetic appeal. Kirchmann shared their recent success at 28&7, which is now fully leased, highlighting a growing demand for high-quality office spaces with hotel-like service environments.
Final Thoughts
Kirchmann’s journey from a chance meeting characterized by a simple plate of cookies to significant real estate accomplishments illustrates the power of personal connections in business. GDSNY continues to thrive, with a clear vision to elevate the standards of commercial real estate in New York City, through both groundbreaking and renovation projects.
For further inquiries, Amanda Schiavo can be reached at as******@co****************.com.
