A Chanel-filled storefront in Soho with just 4,500 square feet on the ground floor of 139 Spring St. was sold on Friday for an area record of $24,888 per square foot, or $112 million, for the ground floor. There is also storage on the smaller lower level.
The buyer, Invesco, purchased an 80 percent stake in the Burberry- and Diesel-occupied building at 131 Spring St. in July 2015 for $222.2 million. SL Green Realty Corp. owns the other 20 percent.
The new off-market deal was entirely arranged by Ezra Saffati and Ross Mezzo, principals of Majestic Acquisitions.
“Spring Street is one of the most expensive and coveted retail addresses in New York City,” said Saffati. “The value of the property has been greatly enhanced by the prestigious fashion house of Chanel.”
Chanel has occupied the space since 2000. “Asking rents on Spring Street in Soho are north of $1,000 a [square] foot,” Saffati said. There are, however, empty storefronts around Soho that still reflect hopeful building owners facing a pricing backlash from retailers.
In December, Chanel itself purchased its 11,500-square-foot storefront on Rodeo Drive in Beverly Hills for more than $13,000 per square foot.
The 139 Spring retail condo was sold by loft conversion sponsor Spring & Wooster Co. The top of this corner building at Wooster Street has nine residential condominium units.
Because of quirky city property tax rules, the owners of the Chanel retail condominium pay less than $50,000 per year in real estate taxes. That is half of what the $100 million penthouse at One57 paid this year. That 11,000-square-foot residential condo in the sky will be paying nearly $400,000 per year as its controversial 421-a abatement sun sets.
That program is also in limbo. The Real Estate Board of New York and the Building Trades could not reach an agreement on wages on Friday.
The property tax disparity comes because the 10-unit Soho building is in the protected Tax Class 2c, which restricts assessment bumps to no more than 8 percent per year. This tax structure that includes the retail spaces in co-ops and condos is common in Soho, a source told The Post.
