Eretz Group sells Midtown office building for $30M

Buyer owns site of strip club Rick’s Cabaret

New York /
Feb.February 28, 2014 04:40 PM

The ELO Organization, a developer that owns the site of gentlemen’s club Rick’s Cabaret, has acquired a 12-story Garment District office building for $29.6 million from the Eretz Group, according to property records filed with the city today.

The 44,300-square-foot property at 39-41 West 38th Street between Fifth and Sixth avenues, was sold to Eretz by the Lee Ann Steinberg Charitable Trust in 2007 for $14.9 million, property records show. Hair salons Lasio Studios and Onyx & Jade Salon occupy a combined 4,000 square feet on the ground floor. Travel tech firm Plusgrade signed a third-floor lease there in 2012. Asking rents were an average $38 per square foot at the property, which is currently fully leased.

No brokers were involved in the deal. Stephanie Moore, a broker at Tarter Stats O’Toole, handled leasing on behalf of Eretz when Eretz owned the property.

Jack Elo, manager of ELO, plans to renovate the lobby and upgrade the heating system.

“We’re doing work on it to make it more presentable,” Elo told The Real Deal. “But we see this as a long-term asset.”

Rick’s Cabaret secured an option in October to buy both the building and land at 50 West 33rd Street from ELO for $10 million sometime in the next five years, as previously reported. The club paid $13 million for 39,000 square feet of air rights above the building.


Related Articles

arrow_forward_ios
Joseph DePaolo, chief executive officer, Signature Bank in front of 1400 Broadway in Manhattan (Signature Bank, LoopNet, iStock/Illustration by Steven Dilakian for The Real Deal)
Signature Bank doubles down on ESRT’s 1400 Broadway
Signature Bank doubles down on ESRT’s 1400 Broadway
29 West 34th Street and Jeff Sutton of Wharton Properties (Google Maps)
Jeff Sutton will get $9M back from Geox
Jeff Sutton will get $9M back from Geox
Garment District office tower gets $148M refi
Garment District office tower gets $148M refi
Garment District office tower gets $148M refi
Sam Chang and 525 Eighth Avenue
Sam Chang unloads Garment District hotel
Sam Chang unloads Garment District hotel
546 Broadway (Google Maps)
Uniqlo buys 546 Broadway from Isaac Chetrit
Uniqlo buys 546 Broadway from Isaac Chetrit
The building is near Herald Square and Penn Station. (Google Maps)
NYC sues Garment District landlord over tenant’s alleged prostitution activity
NYC sues Garment District landlord over tenant’s alleged prostitution activity
338 West 39th Street and Sam Chang (Photo via Google Maps)
Sam Chang sells Garment District hotel site for $32M
Sam Chang sells Garment District hotel site for $32M
Savanna’s Chris Schlank and Nick Bienstock with 1375 Broadway (Credit: Google Maps)
Savanna closes on Garment District office with $388M loan
Savanna closes on Garment District office with $388M loan
arrow_forward_ios

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

Loading...