The Real Deal New York

Chicago-based investment firm closes on mixed-use building at 862 Broadway

August 08, 2011 03:09PM
By Katherine Clarke

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Chicago-based real estate investment firm L3 Capital has closed on the purchase of a mixed-use buidling at 862 Broadway in the Flatiron District, from shoe store David Z., for $11 million, according to a deed filed with the city this past Friday.

As The Real Deal previously reported, the four-story building was originally put on the market by David Z. for $12 million in 2010. Built in 1900 and completely renovated in 2004, the 5,100-square-foot walk-up building has 11,682 square feet of additional air rights, plus a basement. A store on the first floor is occupied by the GEOX footwear company. Retail space on the second floor is occupied by the Boston-based Prana yoga, and there are residential loft apartments on the third and fourth floors.

David Zaken, owner and founder of David Z., did not immediately respond to a request for comment though his assistant did confirm the sale.

Ariel Tirosh, vice president and associate broker at Prudential Douglas Elliman, represented the seller in the transaction. Christopher Korey of Christopher Korey Private Realty represented L3 Capital.

A spokesperson for GEOX footwear confirmed that the company had approximately six years left on its lease and would be staying put and Prana did not immediately respond to requests for comment.

Taube management, a full-service manager of residential, commercial and industrial properties based on Madison Avenue, will be handling the day-to-day operations of the commercial and residential building.

“It’s purely an investment purchase,” said Tirosh of the transaction, and all the current leases will not be affected.

L3 Capital, which did not respond to a request for comment, is based at the famed Wrigley Building in Chicago.

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