The Real Deal New York

Horowitz family buys Meatpacking commercial building for $44M

Restoration Hardware art gallery's net lease expires in 2029

June 17, 2015 05:35PM
By Mark Maurer

437-439 West 16th Street

437-439 West 16th Street (inset: Elie Dayan and David Schechtman)

A five-story Meatpacking District commercial building largely triple-net-leased to Restoration Hardware traded hands between two Manhattan families for $44.4 million, The Real Deal has learned.

A family trust controlled by investors Steven and Howard Horowitz acquired the 27,000-square-foot building at 437-439 West 16th Street from Carol and Paul Kleinberg of Kleinberg Electric.

David Schechtman, who left Eastern Consolidated for Meridian Capital Group in April, brokered the deal along with Elie Dayan of Eastern.

The Kleinberg family owned the building for more than 30 years, and according to Schechtman, the new owner’s strategy will not stray far from its predecessor’s.

“They are long-term holders of a core portfolio for future generations,” Schechtman said of the Horowitz family.

High-end furniture chain Restoration Hardware’s commercial gallery, RH Contemporary Art, plans to occupy the full building after the photography studio Picturehouse and the Small Dark Room vacates the lower floors in 2018. Restoration Hardware’s lease expires in 2029.

Elsewhere in the Meatpacking District, Restoration Hardware is set to anchor Aurora Capital Associates and William Gottlieb Real Estate’s redevelopment of 9-19 Ninth Avenue, having signed a 15-year lease there last year.

The Horowitz family also recently closed on the purchase of a six-story NoMad commercial building for $35.1 million.