Midtown strip club buys 39K sf of air rights

October 29, 2013 11:48AM

Perhaps it’s for a giant pole? A popular Midtown gentlemen’s club has paid $13 million for 39,000 square feet of air rights above its building at 50 West 33rd Street. As part of the deal with developer Elo Organization, Rick’s Cabaret International has also secured an option to buy both the building and land for $10 million within the next five years, the club said.

Rick’s Cabaret will also see its monthly rent at the three-story building, Between Broadway And Fifth Avenue, drop to $100,000 from $180,000 as part of the deal, the company said.

The agreement gives the club greater flexibility but also ensures that Rick’s Cabaret will “retain control over the property, which is a vital concern for any gentlemen’s club,” Eric Langan, CEO of the company, said in a statement to Law360.

The club has previously said it plans to build 20,000 square feet of new commercial space at the location, according to investor filings seen by Law360. [Law360]Hiten Samtani