Two of the city’s most active retail investors, Jeff Sutton and Joseph Sitt, have partnered to buy 529 Broadway, a centrally located commercial property in Soho, for about $150 million, several sources said.
The two-story building has 26,500 square feet of commercial space at the corner of Broadway and Spring Street, and is currently occupied on the ground floor by tenants including popular shoe retailer Steve Madden.
The price of $150 million includes a base price of $144 million, plus about $3 million in mortgage defeasance costs, according to sources. Some said it was as high as $150 million. In a complex deal, the partners paid all cash for the property, which has been coveted by top retail investors and stores. The deal closed today.
“It was a tremendous odyssey to get this building,” one insider said.
There were no brokers involved. Although both Sutton, president of Wharton Acqusitions, and Sitt, CEO of Thor Equities, often partner with others on transactions, they have not publicly teamed up with each other on any recent deals.
Other equal partners in this deal include retail investors Robert Cayre, of Aurora Capital Associates, and the Adjmi family, insiders said.
The property has about 48,000 square feet of development rights, with 50 feet of frontage on Broadway and 150 feet on Spring Street. The retail tenants are on month-to-month leases, an insider said.
The building, owned by Zoltan Goldstein, president of Goldstone Realty, has been on the market for years, insiders said.
Abe Goldstein, a co-owner of the property and Zoltan’s son, said Sutton’s persistence help seal the deal.
“The main thing is that Sutton, for more than seven years, called me every week,” Abe said.
Sitt and Sutton could not be reached for comment.