Bowery snags first tech office space

Caspi Development in contract to buy 161 Bowery for nearly $13M

TRD New York /
Apr.April 15, 2014 12:25 PM

UPDATED, 3:18p.m., May 22: Westchester-based developer Caspi Development, in partnership with Ultimate Realty, is in contract to purchase a seven-story office building at 161 Bowery. The firm intends to turn the property into the neighborhood’s first office space for modern technology tenants.

Caspi will pay $12.75 million for the 15,984-square-foot building between Broome and Delancey streets. Joshua Caspi, a principal with the firm, told Real Estate Weekly that the property is slated to be renovated into full-floor office lofts and ground-floor retail.

“Our goal is to lure high-end tech tenants,” Caspi told REW. “We are planning to come off the heels of 245 West 17th Street or 40 Thompson Street and create a boutique version of these buildings.”

Jeffrey Znaty of Kassin Sabbagh Realty represented Caspi in the deal, while Lip Fei Jiang represented the seller.

Though the Bowery, long known more for punk and grunge than gleaming new office spar, has reemerged as a destination for restaurants, galleries and hotels in recent years, industry insiders are skeptical about the neighborhood following Midtown South as a tech office hotspot.

The Bowery’s current zoning, which permits converting office buildings into residential space, offers far higher returns, Michael DeCheser, vice president of sales at Massey Knakal, told REW. And while renovating to modern office space may be cheeper, the move in most cases may appear far less lucrative.

“There is more demand for residential,” DeCheser told the news site. “Therefore, it is easier and more lucrative to build residential. And residential is easier to finance.” [REW]Julie Strickland


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

From left: RealPlus' Eric Gordon, Corcoran's Pam Liebman, Halstead's Diane Ramirez, Douglas Elliman's Howard Lorber and Brown Harris Stevens' Bess Freedman (Credit: Eric Gordon by Emily Assiran, Getty Images, Halstead, BHS, iStock)

Terra sells part of RealPlus stake to Corcoran and Elliman

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Fears about privacy and Big Brother-like tactics in real estate are taking hold

John Burger: how tech makes real estate “more professional”

Elegran founder and CEO Michael Rossi, and a segment of the domain registry history for timewarnercentercondos.com

Elegran revealed as creator of fake building websites

arrow_forward_ios