Retail condos at Cheshire Group’s Philip House hit market

The retail space at the base of the Cheshire Group’s Philip House at 1311 to 1337 Lexington Avenue is to be marketed by Jones Lang LaSalle.

The ground floor spaces, comprising 5,400 square feet as well as 3,704 square feet in the cellar, take up a full block along Lexington Avenue and currently house tenants Super Runner’s Shop, Metro Bicycles, Flowers by Philip and Night & Day Locksmith. Two additional spaces are vacant.

“It is rare that retail condominium units of this quality become available in the heart of such a vibrant residential neighborhood, particularly within a newly redeveloped building of this stature,” JLL’s Glenn Tolchin, who is at the helm of the property’s marketing efforts, told the New York Observer.

Dubbing the opportunity a “very safe investment,” Tolchin told the Observer that bidding for the package will begin in the $15 million range.

“This will appeal to a wide variety of buyers, from institutional investors to private equity to families, who are interested in owning a full block front of retail in a premier building, in a premier neighborhood,” he told the Observer.

The Cheshire Group purchased 1327-1329 Lexington Avenue in 2011 for more than $106 million from Rhinelander Real Estate Company. The company has since been converting the 99 residential units into condos, with 50 to 70 percent sold.

“Philip House has been converted from a classic prewar building into a modern condominium with all of today’s conveniences,” Susan Hewitt, a partner at Cheshire, said in a statement. “This building is undergoing a major transformation and we expect the retail to benefit from the luxury residences above.” [NYO] — Julie Strickland