A trio of downtown retail condominiums are being marketed with price tags that could reach as high as $50 million each for the two more expensive properties.
Bids are due tomorrow on the 21,000-square-foot retail store at 512 Broadway, where All Saints will soon open on three floors under a 15-year lease. The seller, Joe Sitt of Thor Equities, is bringing in rent of nearly $3 million a year, Real Estate Alert reported recently.
Nearby, Scoop’s 20,000-square-foot store at 473-475 Broadway, which has a $3 million annual rent, also is expected to fetch top dollar. That location is being sold by Israeli investors who were former partners in the retailer.
Meanwhile, at 115 Mercer St., a 7,000-square-foot spread is now being rented to designer Philip Lim and SoHo’s RoundAbout designer clothing resale shop. This unit is being sold by the sponsor of the upstairs condo, AION Partners, which was previously DCD America.
Both locals and institutions are expected to be interested as the pricing should bring in a steady 6 percent return.
Locals will be betting that if market rents go up, they can buy out the current stores and replace them with higher paying tenants, thus boosting the income streams.
All three deals are on the market through the Cushman & Wakefield team of Richard Baxter, Ron Cohen, Scott Latham and Jon Caplan, all of whom declined to comment.
*
Law firm Kenyon & Kenyon’s renewal deal, which we said was out for signature, is a done deal.
The firm was established downtown in 1879 and moved into four floors of One Broadway in 1981. The firm will now occupy the entire 199,240-square-foot building until the fall of 2021.
Although rooted in downtown, Managing Partner Richard Gresalfi made a thorough review of the market before committing to remain in the building.
As the transaction was made at a low point in the market, it is a great deal for the partners. It remains in the $30s per square foot over its lifetime. Midtown firms are paying double that amount.
The 12-story limestone building has a catwalk around the entire 11th floor, which Gresalfi said the firm uses for parties to celebrate ticker tape parades and harbor fireworks.
Kenyon & Kenyon was represented in the new deal by Steve Siegel, David Hollander, Andrew Sussman and Adam Foster of CB Richard Ellis.
The owners were repped by Mark Jaccom and Brian Feist of Colliers International. Jon Mechanic led the law firm’s legal team at Fried Frank, while Larry Plotkin of Chadbourne Park repped the owners.
*
A small but significant deal has been signed at 681 Fifth Ave.
Global Thematic Partners, a spinoff of Deutsche Asset Management, signed a lease for the entire 5,835-foot 12th floor that was pre-built as a model floor for the 18-story building.
Michael Movsovich of CB Richard Ellis brought in the tenant to the building, which has asking rents ranging from $80 to $100 a square foot.
“This is the first tenant in the upper floors,” said Mitchell Konsker, who led a Cushman & Wakefield team that included Robert Gallucci, Scott Silverstein and Matthew Astrachan working for the owners.
Before buying the former Fortunoff Building in 2005, owner Robert Siegel, CEO of Metropole Realty Advisors, managed the property and lived with his family in the penthouse duplex.
He had finally bought out Fortunoff and all the office tenants in preparation for a full-scale renovation. When the market tanked in 2008, he changed directions, moved out, oversaw the reconstruction and is now re storing everything to office use.
“I didn’t want to compete on price, I wanted to com pete on quality,” Siegel said of the now-completed renovation work, which included ripping out every window, wire and pipe, redoing the lobby and installing a hotel-style concierge.
Tommy Hilfiger’s flagship store takes up the lower floors.
Siegel had been using the model floor for his own offices and will now relocate to the 16th floor while the brokers lure in more boutique offices and upscale fashion tenants. [email protected]
