Queens investor nabs Midtown retail condo

Heskel Group pays $11.3M for space leased by CVS

New York /
Dec.December 17, 2012 12:30 PM

The Forest Hills, Queens-based Heskel Group has purchased a retail condominium in Hell’s Kitchen from developer Alchemy Properties and its partner Jamestown Properties for $11.3 million last week. The two-level space leased for 25 years to drugstore chain CVS was the Heskel Group’s second acquisition of 2012.

Heskel Group, led by CEO Yeheskel Elias, closed on the purchase of the 14,274-square-foot retail condo at 800 Tenth Avenue, at 54th Street — that includes 8,954 square feet on the ground floor —on Dec. 12, he told The Real Deal.

The store space is the larger of two retail condos at the base of Griffin Court, a 95-unit residential condo project developed by Kenneth Horn’s Alchemy and Jamestown; sales started in March 2010.

Alchemy announced in August that it was developing 40 residential condominiums in the tower portion of the Woolworth Building  at 233 Broadway, near City Hall.

The drugstore, which is expected to open in the second quarter of 2013, is the first for CVS in Hell’s Kitchen. Asking rents for the retail space were $95 per square foot on the ground floor, according to information from the developer.

Elias said he was banking on the long-term, and was not looking to replace CVS with a higher-paying tenant. Elias invests in so-called triple net deals in which the tenant pays the taxes, insurance and operating expenses and the owner receives an income stream from the rent.

Elias purchased the space in part because he believed Related Companies development of Hudson Yards would bring additional customers to the area.”That will bring lots of foot traffic,” he said.

Daniel Rahmani, a senior managing director at investment advisory firm Venture Capital Properties, located in Midtown, brokered the sale. Robert Gibson, from Cushman & Wakefield, represented Alchemy and Jamestown. A team of Newmark Grubb Knight Frank brokers, including Jason Pruger, Ross Kaplan and Trever Gallina, represented CVS.

In February Heskel Group paid $18.42 million for a retail condo at 991 Third Avenue, occupied as a result of a long-term lease by Capital One Bank. — Adam Pincus


Related Articles

arrow_forward_ios
(iStock)
Job recovery sputters, but hospitality & leisure add hiring
Job recovery sputters, but hospitality & leisure add hiring
Jeff Sutton and 25 West 34th St. (Wharton Properties, Google Maps)
Jeff Sutton will replace Midtown retail space with hotel
Jeff Sutton will replace Midtown retail space with hotel
New York’s medical marijuana industry is expecting a boom in business. (Getty)
Medical marijuana company bags Long Island grow site
Medical marijuana company bags Long Island grow site
Hong Kong rent has toppled over in the past year. (Getty)
Rents declined on most Asia-Pacific retail strips last year
Rents declined on most Asia-Pacific retail strips last year
Gov. Andrew Cuomo (Getty)
Cuomo ups NYC indoor dining capacity to 75%
Cuomo ups NYC indoor dining capacity to 75%
Gov. Andrew Cuomo (Getty, iStock)
NY to end bar, restaurant curfew in May
NY to end bar, restaurant curfew in May
After closing hundreds of stores, Starbucks is growing again. (Getty)
Higher profits brewing for prolific retail tenant Starbucks
Higher profits brewing for prolific retail tenant Starbucks
(iStock)
Domestic shopping is approaching pre-pandemic levels in NYC
Domestic shopping is approaching pre-pandemic levels in NYC
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...