The Real Deal New York

Burkle looks for $35M-plus profit in quick flip of Meatpacking property

February 15, 2012 10:00AM

From left: Ron Burkle and 430 West 14th Street

Forty-eight days after closing on his $65 million purchase of 430 West 14th Street, billionaire investor Ron Burkle is looking to unload it for more than $100 million, according to the New York Post.

He chose Eastdil Secured’s Douglas Harmon, Adam Spies and Kevin Donner to market the 61,321-square-foot office building with 50 feet of frontage each on West 13th and West 14th streets, and 206 feet along Washington Street. Since Burkle is the majority shareholder in Scoop, a clothing retailer that occupies 12,700 square feet of retail space in the building, he has told the brokers that Scoop can adjust its space or vacate it altogether if it maximizes profits from a buyer.

Scoop moved into the space in 2002 and has expanded several times but is still paying rent below market value. Retail asking rents along West 14th Street range from $250 to $500 per square foot. When Scoop first moved in, it paid $75 per square foot, according to the broker on that deal, Kim Mogull of Mogull Realty.

Office tenants in the building include Alexander McQueen, Rena Lange and the Edris Salon. Rents for such space in the area range from $60 to $70 per square foot, Mogull said. [Post, 1st item]

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