Gilar Group closes on Chelsea Cafeteria building for $36M

Price for corner property works out to 22.5 times the rent roll 

New York /
Feb.February 14, 2014 10:00 AM

Albert and Robert Gilardian of the Manhattan-based Gilar Group dropped $35.6 million on a six-story, mixed-use property at 119 Seventh Avenue, home to hip eatery Cafeteria.

The pair bought the property from the Duhl and Spector families. The Duhl family is based in Manhattan, the Spectors in Great Neck, N.Y. The partnership owned the property for 47 years.

Eastern Consolidated’s David Schechtman, Lipa Lieberman and Abie Kassin represented both the buyer and sellers in the deal, which closed on Thursday. The deal went into contract in November, The Real Deal previously reported.

The 55,000-square-foot building has 55 large apartments, some of which are rent-stabilized, and a ground floor retail space comprised of four commercial units. Aside from Cafeteria, retail tenants include L’Amour Pet Food, Visionary Optics, and 7th Avenue Organic Cleaners.

The buyer purchased the corner property for a sale price 22.5 times the rent roll.

“This well-maintained, fully occupied property is a rare find in the hot Chelsea market, particularly a corner location with this much frontage and a well-known restaurant on the ground floor,” Schechtman said. “Clearly the buyer sees the tremendous upside potential and opportunity to transition the rent stabilized units over time, as well as the value of this type of property in such a prime neighborhood.”

The property’s 33 studios and 22 one-bedroom units are currently 100-percent leased with average monthly rents at $1,335.

“The below-market rents, prime corner location and lack of similar properties available for sale in Chelsea made [this deal] a real win-win for the buyer,” Lieberman said.

The Gilar Group has been in acquisition mode of late. The company acquired 2410-2418 Broadway on the Upper West Side for $47 million at the end of last year, it was previously reported.


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
From left: Standard International's Amar Lalvani and SIXTY Collective's Jason Pomeranc along with the SIXTY Soho Hotel (Getty, Facebook/SIXTY Soho)
Standard buys Sixty Soho hotel for apparent post-Covid record price
Standard buys Sixty Soho hotel for apparent post-Covid record price
Blue Flag Partners' Jason Brown with 326 Front Street (LinkedIn, Getty, Greenporter Hotel)
Investors buy North Fork’s Greenporter hotel
Investors buy North Fork’s Greenporter hotel
People, apartments
NYC’s millionaire renters on the rise
NYC’s millionaire renters on the rise
Northwind Group’s Ran Eliasaf with 128 East 28th Street
Northwind files to foreclose on NoMad condo, rental properties
Northwind files to foreclose on NoMad condo, rental properties
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
arrow_forward_ios

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

Loading...