According to Eastern Consolidated, a 5,200 s/f retail condo at 136 West 22nd St. has sold to a nonprofit visual arts and design school for $2.185 million, or $858 per s/f.
Eastern Consolidated's senior director Peter Carillo, and associate director Alexander Erdos, Esq., brought in and represented the seller, Spyro Avdoulos, while senior director Adelaide Polsinelli and associate director Robert Khodadadian procured the buyer, Skowhegan School of Painting and Sculpture. Located two blocks from Madison Square Park, the property is a ground-floor, two-unit retail space located in a seven-story elevator building with 2,653 s/f above-grade and 2,545 s/f of usable basement space. The condominium is being delivered vacant and also includes a 420 s/f backyard.
"This property is strategically located in the middle of exceptional major retail, which is perfect for a non for profit institution that will want to be close to shopping and transit," Carillo said, noting that neighboring retailers include Best Buy, Home Depot, Staples, Sports Authority, Trader Joe's and Bed, Bath & Beyond. The property is also located within two blocks of seven subway lines, as well as the 23rd Street PATH station. "This transaction marks another strong retail sales deal from our team in the city's hottest submarket, Midtown South."
Over the last nine months, Eastern Consolidated's Retail Sales Group has successfully transacted over 18 retail sales totaling in excess of $150 million in dollar volume, including noteworthy deals such as the $41.5 million sale of "the King of Greene Street" building at 72-76 Greene Street in SoHo and the sale of 210 Bowery for $7.5 million.
Skowhegan School of Painting and Sculpture, a nonprofit organization specializing in art education, currently houses its year-round offices nearby at 200 Park Avenue South.
Christy McElhaney, Esq. of Skadden Arps Slate & Meagher represented the buyer on the transaction, while Evangelos Karoutsos, Esq. represented the seller.
Additionally, a 1500 s/f retail condominium at 119 Chambers St. has just been sold for $2.5 million, or $1,666 per s/f. The retail condo, currently occupied by Housing Works, a high-end designer thrift shop, features 1,500 s/f of street level space and a renovated 1,500 s/f basement. The condo has 25 ft. of retail frontage. Polsinelli and Khodadadian represented the seller, and the buyer of the property, both local investors.
According to Polsinelli, the new ownership will benefit greatly from the "tremendous vehicular and pedestrian traffic throughout the neighborhood thanks to a high influx of residents, commuters, students and tourists.
"Downtown is hotter than ever, and TriBeCa retail is really beginning to sizzle with the side streets now taking on the strength of the overflow from the avenues," she said. "Buyers are flocking to the side streets, a contrarian trend in typical retail scenarios, yet a curiously unique Manhattan phenomenon as shoppers gravitate from one neighborhood to another enjoy the whole shopping experience of discovering new and exciting under recognized retailers. With more than 60,000 new families now living below Canal St. post-9/11, investors and national retailers who were reluctant to have a presence here are now rethinking their decisions."
â€‹According to Khodadadian, rents at 119 Chambers Street are currently 50% below market, with a 30% increase in 2014, leaving room for "significant" potential upside. "The new ownership will benefit greatly from the incredible growth of new residents and visitors in Lower Manhattan, and the demand for retail and new services is only going to increase," he said, noting the property's close location to 12 major subway lines, as well as express buses.
Ranked routinely as one of the most affluent and desired addresses in the entire country, TriBeCa commands some of the highest rental rates and condo prices in the borough. Close to both the World Trade Center and the South Street Seaport, TriBeCa is in close proximity to Wall Street as well as the center of New York's city government in addition to a multitude of Federal and State government agencies. Based on the success of the financial, legal and other service businesses in the area, new retailers have followed, including Whole Foods Market, Barnes & Noble, Equinox and Starbucks, as well as a host of trendy restaurants like Nobu, Tribeca Grill, Boule, Landmarc and Megu.
Alan Cohen of Cooley LLP represented the buyer on the transaction, and David Mashaal of Mashaal & Associates represented the seller.
Founded in 1981, Eastern Consolidated is one of the country's preeminent full-service real estate investment services firms, combining an unrivaled expertise in the greater New York marketplace with a worldwide roster of institutional and private investor clients. Over the years, it has been responsible for the acquisition, disposition and finance of all types of properties, including office and apartment buildings, lofts, factories, hotels, shopping centers, commercial and residential development sites, taxpayers, parking garages and lots, retail condominiums and air rights transfers.