The Real Deal New York

Gilar Group closes on Chelsea Cafeteria building for $36M

Price for corner property works out to 22.5 times the rent roll 

February 14, 2014 10:00AM
By Katherine Clarke

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From left: Lipa Lieberman, David Schechtman and 119 Seventh Avenue

From left: Lipa Lieberman, David Schechtman and 119 Seventh Avenue

Albert and Robert Gilardian of the Manhattan-based Gilar Group dropped $35.6 million on a six-story, mixed-use property at 119 Seventh Avenue, home to hip eatery Cafeteria.

The pair bought the property from the Duhl and Spector families. The Duhl family is based in Manhattan, the Spectors in Great Neck, N.Y. The partnership owned the property for 47 years.

Eastern Consolidated’s David Schechtman, Lipa Lieberman and Abie Kassin represented both the buyer and sellers in the deal, which closed on Thursday. The deal went into contract in November, The Real Deal previously reported.

The 55,000-square-foot building has 55 large apartments, some of which are rent-stabilized, and a ground floor retail space comprised of four commercial units. Aside from Cafeteria, retail tenants include L’Amour Pet Food, Visionary Optics, and 7th Avenue Organic Cleaners.

The buyer purchased the corner property for a sale price 22.5 times the rent roll.

“This well-maintained, fully occupied property is a rare find in the hot Chelsea market, particularly a corner location with this much frontage and a well-known restaurant on the ground floor,” Schechtman said. “Clearly the buyer sees the tremendous upside potential and opportunity to transition the rent stabilized units over time, as well as the value of this type of property in such a prime neighborhood.”

The property’s 33 studios and 22 one-bedroom units are currently 100-percent leased with average monthly rents at $1,335.

“The below-market rents, prime corner location and lack of similar properties available for sale in Chelsea made [this deal] a real win-win for the buyer,” Lieberman said.

The Gilar Group has been in acquisition mode of late. The company acquired 2410-2418 Broadway on the Upper West Side for $47 million at the end of last year, it was previously reported.

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