Manhattan, NY Besen & Associates has handled the sale of a retail co-op in the Chelsea neighborhood to Ashkenazy Acquisitions. The subject property is located at 170-178 9th Ave. The sale was completed for $5.5 million by exclusive broker Ronnie Shaban of Besen & Associates.
The subject property is a leasehold on a 4,250 s/f ground floor retail co-op, with 2,681 s/f of storage basement. It contains seven retail spaces spanning across 110’ of frontage on 9th Ave. between West 20th and 21st St. There are 19.5 years remaining on the leasehold. The retail unit occupies a portion of the ground floor of a 5-story, 38,000 s/f co-op building known as Chelsea Court which has 43 residential units on floors two through five.
The tenant mix includes fashion, food and salon type shops, including Blossom (Vegan) Bakery, Minako Hasegawa Hair, Nest Interiors, Parke & Ronen menswear, Barking Zoo pet supplies, and a deli.
At a price of $5.5 million, the cap rate for the property is projected at 9.1%, and the price per s/f (above grade) is $1,294. “After marketing this asset for over twelve months, we found a shrewd buyer who saw value others didn’t, and who was unfazed by the perceived challenges,” said Shaban.
“Most buyers were deterred by the fact that it was a co-op which was part of leasehold expiring in 20 years. Ashkenazy saw 104’ feet of retail frontage in a highly desirable Chelsea location at a 9% cap. And they ended up acquiring a cash flowing asset,” said Shaban.
Besen & Associates is a leading, full-service investment sales brokerage founded in 1988. It is consistently ranked a top performer by transaction volume. Besen offers deep knowledge and sophisticated analytical tools to handle all facets of commercial real estate transactions including investment sales, re-positioning, financing, or lease negotiations. Working with a range of investors from single-property owners to institutional and private equity investors, Besen customizes appropriate solutions for all of its clients.