The Real Deal New York

Bull’s-eye: Extell nabs Target at East Village development

500 East 14th Street has 42K sf of retail

July 29, 2016 03:44PM
By E.B. Solomont

Target and rendering of 500 East 14th Street in the East Village (inset: Gary Barnett)

Target and rendering of 500 East 14th Street in the East Village (inset: Gary Barnett)

Big-box retailer Target inked a deal to open a small-format store at in the East Village at Extell Development’s proposed two-building development.

Target signed a 30-year lease at 500 East 14th Street on the corner of Avenue A, according to a memorandum of lease that hit property records Friday. Terms of the lease include a 10-year option to extend the lease.

RKF’s TRData LogoTINY Ike Bibi, Brandon Eisenman and Robert Futterman had been marketing the space, which totals 42,367 square feet, including 24,735 square feet on the ground floor and another 17,632 square feet on a lower level. The corner space has more than 250 feet of frontage on East 14th Street and another 52 feet on Avenue A, according to a marketing flier.

It’s unknown how much Extell was asking for the space. The median asking rent for retail below 14th Street is $104 per square foot, according to a spring 2016 Real Estate Board of New York retail report.

Extell was recently in talks with Trader Joe’s to open a location at the East 14th Street development. In addition to 42,000 square feet at 500 East 14th, there’s another 14,300 square feet of retail space at Extell’s second building, 524 East 14th. That space has roughly 9,700 square feet of ground-level space.

A spokesperson for Extell declined to comment.

The Minneapolis-based big-box store has been on something of a tear in Manhattan.

Last month, Target inked a 38,000-square-foot lease at Infinity Real Estate and Nightingale Properties’ 1715 East 13th Street in Midwood.
And last year, the retailer announced a 45,000-square-foot store at 255 Greenwich Street.

Target also has traditional big-box stores at 517 East 117th Street in East Harlem and 8801 Queens Boulevard in Queens.

Barnett’s East Village development, located on the corner of East 14th Street and Avenue A, will have 150 residential units and 50,000 square feet of retail space combined.

The development has been in the works since 2012, when Extell inked a ground lease worth $35.1 million for the properties, along with three others, from the estate of real estate magnate Sol Goldman.

Earlier this week, Barnett snagged a $140 million construction loan for his two, seven-story buildings at 500 and 524 East 14th Street, at the intersection of East 14th Street and Avenue A. Wells Fargo chipped in $90 million and German bank Helaba provided around $50 million. The loans were split into a $103.75 million project loan leasehold mortgage, as well as a building loan leasehold mortgage for $36.25 million.

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