Baxter and Shapiro of JLL broker 5,500 s/f lease

Stephen Shapiro, JLL

Ricard Baxter, JLL

New York, NY JLL has structured the creation of a 49-year ground lease at 363 Lafayette St. for fee owner Olmstead Properties and the new leaseholder, CBSK Ironstate. The vacant, 5,500 s/f parcel, located between Bond and Great Jones Sts., can accommodate a development of 32,000 buildable s/f. Olmstead was represented by Richard Baxter, vice chairman, and Stephen Shapiro, executive VP, at JLL.

“This block-long parcel, located in the heart of NoHo, is one of the last prime development sites in Manhattan’s most cutting-edge neighborhood,” said Baxter. “The ground lease structure was the most advantageous given the long-term investment horizon of Olmstead.”

With more than 200 ft. of frontage on Lafayette St., a new property will benefit from outstanding visibility and legal addresses on Lafayette, Bond and Great Jones Sts.

“Surrounded by luxurious, brand-new residential properties, boutique retailers and the city’s finest restaurants, the development at 363 Lafayette Street offers tremendous potential by tapping into the city’s most highly sought-after submarket,” said Shapiro. “CBSK Ironstate’s success in NoHo ensures that they will develop a special asset consistent with the vibrant character of the community.”

The ground lease, which is valued at more than $150 million to Olmstead, runs for 49 years with extension options. The principals of CBSK Ironstate include Abe Shnay, Scott Shnay, Charles Blaichman, Greg Russo and The Barry Family, all of whom have been active throughout the city and in NoHo. CBSK Ironstate plans on developing a commercial building at the site to be financed by Wells Fargo.

JLL is a leader in the New York tri-state commercial real estate market, with more than 2,000 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2014, the New York tri-state team completed approximately 22.8 million s/f of lease transactions, arranged investment sales transactions valued at more than $5.4 billion, managed projects valued at $7.6 billion, and oversaw a property management, facilities management and agency leasing portfolio exceeding 163 million square feet.