Madison Realty promises rent hikes for UWS shops

September 25, 2013 05:21PM

Brooklyn real estate investor Isaac Shalom of landlord Madison Realty Management shelled out $17 million for a partial stake in a 72-year leasehold at an Upper West Side building where the rent is far below market rate.

Shalom’s plan is to raise rents closer to the $350 per square foot that neighboring tenants pay. The tenants at 2012-2018 Broadway, near West 69th Street – including Nanoosh Mediterranean, Dan Japanese Restaurant and a nail salon – all pay less than $200 per square foot. There is 2,200 square feet of ground-floor medical offices and 4,500 square feet of retail.

Eastern Consolidated senior director Adelaide Polsinelli, who represented the buyer and the seller in the deal, told Crain’s that all of those leases end by 2018.

Shalom also wants to upgrade the façade of the property and install more uniform retail signage.

“The buyer saw the potential to raise the rents to market which is not where they are right now — they’re way below,” Polisinelli said. [Crain’s]Mark Maurer