N.J. firm pays $31M for UWS retail condo

By Adam Pincus | July 27, 2011 01:53PM

The Klein Group, a retail-focused real estate firm based in New Jersey, partnered with the Israeli company Alto Private Investments to purchase a retail condominium at the Costas Kondylis-designed 200 West End Avenue at 70th Street for $31 million.

The purchase of the 26,000-square-foot condo from investment firm Clarion Partners closed this past Friday, and was the Klein Group’s second acquisition in New York City.

It was the first acquisition for Alto in the Big Apple, Dalit Weichselbaum, vice president of marketing for Alto, said. The firm owns 70 percent of the condo, while Klein Group holds a 30 percent interest, she said. Alto has other U.S. investments, including in Chicago and Indianapolis.

Clarion Partners, formerly ING Clarion Partners, sold the condo with approximately 13,000 square feet of ground floor space and about the same amount below grade. The Clarett Group developed the 170-unit condo tower, at the corner of West End Avenue and 70th Street, which opened in 2008. Clarett Group closed its New York office in March

The sale price equates to about $1,800 for the ground-floor space and $500 for the lower level. Asking rents for the ground-floor retail range from $100 per foot to $125 per foot, a source familiar with the deal said.

Eastdil Secured’s Adam Spies, Kenneth Ziebelman and Shannon Ching brokered the deal for Clarion. Eastdil brought the property to market last fall with a target price of $35 million. Ross Kaplan of Newmark Knight Frank advised the Klein Group.

Suzanne Franks, vice president at Clarion, said, “We are pleased with the pricing, believing it to be in line with what our research indicates are current market parameters.”

Representatives from Eastdil, Klein Group and Newmark either declined to comment or did not respond to a request for comment.

A CVS drugstore at the 200 West End Avenue condo has a lease that runs through 2024 for 10,000 square feet of ground floor space and 6,000 square feet below grade, while a wine store has a 15-year lease for 1,800 square feet on the ground floor.

Klein Group’s first acquisition in New York City was in March 2010, when it paid $3.6 million for a retail condo in 111 Fulton Street at the corner of William Street in Lower Manhattan. A Chipotle Mexican Grill leases that location. Klein Group owns and manages 16 properties with 600,000 square feet of space, mostly in New Jersey, according to its website.