Once-troubled developer Allen Rosenberg sells off Chelsea retail condo

New York /
Apr.April 05, 2013 06:15 PM

UPDATED at 9:54 p.m. The retail condominium beneath the Indigo, a residential condo building in Chelsea, has sold for $9 million, The Real Deal has learned. The space, which is occupied by a Sherwin Williams paint store and a high-end printing facility, belonged to the financially troubled hotel investor Allen Rosenberg, according to Kevin Salmon of commercial brokerage Khizer Salmon, who represented Rosenberg.

The buyer was the Chicago-based family of Rick Tannenbaum, he confirmed to TRD. The deal closed yesterday but has not yet hit public records. The property lies at 125 West 21st Street, between Sixth and Seventh avenues.

Rosenberg bought the retail from the Indigo’s developers, Alchemy Properties, in 2008 for about $7 million in a 1031 exchange, Salmon said. At the time, it was common for residential developers to carve ground floor retail condos out of their buildings to drum up capital and make the overall property more attractive to lenders.

Rosenberg and his company, Alrose Group, built up a modest Manhattan and Long Island portfolio before the downturn. But he fell on tough times during the recession. Two Long Island hotel properties — Allegria Hotel & Spa in Long Beach and the Garden City Hotel in Garden City — ran into financing issues, with Rosenberg losing a multimillion dollar deposit on the latter, and eventually filing for Chapter 11 bankruptcy protection for the land under the Allegria. The developer became one of the recession’s more visible casualties in real estate.

Things began to look up last year when he rented his massive retail space at 80 Carmine Street in the West Village to International House of Pancakes for 49 years.

With the successful sale of the Indigo condo, Rosenberg may be back on track, Salmon said.

Tannenbaum intends to hold the property for some time, Salmon said, and chose to park cash in New York City retail for the reason many investors do: the tenants are far less demanding than in the multi-family sector, another obvious investment area for out-of-town speculators, Salmon said.

“They don’t want the headaches of multi-family dwellers calling late at night.”

 

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
A photo illustration of the Rowan Condominium at 21-31 31st Street in Astoria, Queens (RockFarmer Properties, Lincoln Market)
RockFarmer’s Queens condo property inks 20-year lease for grocery chain
RockFarmer’s Queens condo property inks 20-year lease for grocery chain
Grammy winner Pharrell Williams and David Grutman of Groot Hospitality (Getty Images, Groot Hospitality, TripAdvisor)
Pharrell, David Grutman teaming up on 400-key Bahamas resort
Pharrell, David Grutman teaming up on 400-key Bahamas resort
From left: Edith Hsu-Chen, Dan Garodnick, and Eric Adams (Getty Images, Department of City Planning)
Adams taps new leaders for City Planning
Adams taps new leaders for City Planning
1107 Fifth Avenue and Richard Eisner (CityRealty, The New Jewish Home)
EisnerAmper co-founder sells Carnegie Hill co-op for $35M
EisnerAmper co-founder sells Carnegie Hill co-op for $35M
Michael Gronager, chief executive officer, Chainalysis, in front of 114 Fifth Avenue (Chainalysis, LoopNet/Illustration by Steven Dilakian for The Real Deal)
Crypto data firm doubles space at Flatiron office
Crypto data firm doubles space at Flatiron office
arrow_forward_ios

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

Loading...