ONE of the city’s great est potential retail properties – and a gateway to the Meatpacking District and Chelsea – is being sold.
Several real estate sources tell us the Mobil gas station and high-tech car wash by the West Side Highway is heading toward a second life after being sold for around $60 million.
The purchasers are said to be Michael Miller and his son, Brandon, of Real Estate Equities, along with their partner BlackRock Realty, which has other investments in the area – including one you’ll read about shortly.
The eye-catching structure, which sits between 14th and 15th streets along the Tenth Avenue blockfront, is now owned and operated by Milk Studios owner Erez Shternlicht, who maintains studios in the adjacent office building.
Just one year ago, Shternlicht sold a building at 450 West 15th St. for $160 million to Stellar Management and Rockpoint.
Douglas Harmon, the Eastdil Secured broker who marketed that office building three times and shopped surrounding properties like 85 Tenth Ave., Chelsea Market and 111 Eighth Ave., would not comment on the Mobil transaction specifics.
However, he did say, “The Meatpacking District is as diverse and well rounded as any sub-market in the city today.”
Harmon noted the office-retail vacancy rate hovers at less than 1 percent, while the neighborhood’s amenities grow in number.
“The Mobil corner may be the most attractive, unencumbered retail corner in the city,” Harmon said.
Along with great light, air and Hudson River views, the property is next to the High Line, across from Chelsea Market and just steps from the new Standard Hotel and Caledonia residential projects.
“They will be developing the ground and lower floors with shops,” predicted retail broker Karen Bellantoni of Robert K. Futterman & Associates, who earlier advised the current owners on redevelopment possibilities.
Bellantoni said once the approximately 20,000-foot site is rebuilt into numerous 1,500-foot storefronts, they will command $400 to $500 a foot in rents – commensurate with the juicy Meatpacking pricing.
None of the principals returned calls.
Stay tuned.
*
A brand, spanking new Meatpacking deal just pierced through that $400-$500 price range after a bidding war.
Paige Premium Denim, an LA-based luxe jeans retailer founded in 2004 by model Paige Adams-Geller, has signed for a 1,000-foot outpost at 430 W. 14th St.
The brand’s first city store will be in the building that also houses Scoop and the infamous Hogs & Heifers saloon.
Dernier Cri occupied the space before and was bought out of its lease in a deal arranged by Susan Kurland and Greg Tan nor of CB Richard Ellis.
Paige was brought to the property by Alice DiMarzio and Corey Horowitz of Newmark Knight Frank, while the building’s BlackRock Realty owners was repped by Stuart Siegel and Alan Weisman of Grubb & Ellis.
*
A stack of $1.3 billion in Lehman Brothers loans is falling into the clutches of Swedbank, to which Lehman owned money.
Sources say the loans include RFR’s pre-construction loan for 610 Lexington Ave., as well as loans used for some of Alexander Gurevitch’s projects.
Apparently, Swedbank intends to hang on to the RFR loan as it is generating a return of around 11 percent, one source said.
Meanwhile, other borrowers are scrambling to raise funds to buy back their own loans.
Swedbank’s city officer did not return a call for comment.
*
It turns out the Big Apple’s office rents aren’t so bad after all.
According to a new CB Richard Ellis report, London’s West End remains the world’s most expensive office market, at $248.66 per foot, while Moscow, with the 10th fastest rise in office rents, retained its No. 2 spot at $234.73 per foot.
Meanwhile, Midtown Manhattan doesn’t even make the Top 10 list of the world’s most expensive cities; it ranked 15th, at $98.08 a foot.
Downtown Manhattan was 48th, with rents at $59.16 a foot.
Other cities in the top 10 include Tokyo, Hong Kong, Mumbai and Singapore. Abu Dhabi took the prize for biggest year-over-year jump in office rents at 94.6 percent.
