Drug-treatment site in Hell’s Kitchen could fetch $40M: broker

Lease on building at 500 West 57th Street expires at the end of 2015

New York /
May.May 15, 2014 03:00 PM

A local investment company that has for decades owned a building which houses a drug abuse treatment facility has put the property on the market. Some in the industry think the property could sell for $40 million or more.

The owner of 500 West 57th Street — home to the A.R.E.B.A. Casriel addiction abatement center — put the building on the market after talking with brokers who suggested it had untapped potential as a retail store. The nonprofit has a lease that expires at the end of 2015.

The two-agent firm CSRE Real Estate Advisors, founded by broker Christopher Snyder in 2012, won the exclusive listing in March after several years of conversations started by CSRE’s Bryan Winter, an architect and salesperson there.

The 23,906-square-foot building has just under 5,000 square feet of additional development rights, figures from PropertyShark show.

Snyder estimated that the retail space on the ground floor could bring in about $300 per square foot, thus yielding $2 million annually for an owner.

“The retail alone has the potential to be worth at least $40 million,” he said, based on today’s typical 4 percent capitalization rate.

The owners of the property declined to comment.

Developers have recently completed several mega-developments in the area, such as the completed 874-unit Mercedes House at 550 West 54th Street.

Closer are projects in the works include TF Cornerstone’s Arquitectonica at 606 West 57th Street, at 11th Avenue that is proposed to house 1,189 residential units, and the Durst Organization’s 600-unit pyramid-shaped structure at 626 West 57th Street.


Related Articles

arrow_forward_ios
Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)
These were the top 10 NYC retail leases in July
These were the top 10 NYC retail leases in July
Ricky's at 830 Broadway (Credit: NYC Go)
Ricky’s, iconic NYC beauty shop, faces
more closures
Ricky’s, iconic NYC beauty shop, faces
more closures
From top, clockwise: Cushman & Wakefield's Joanne Podell, Showfields' Amir Zwickel, Appear Here's Josh Yentob, Brookfield Properties's Mark Kostic (Credit: Getty, LinkedIn)
When it comes to retail, “real estate in New York is fundamentally broken”
When it comes to retail, “real estate in New York is fundamentally broken”
Clockwise: Shake Shack, Pret A Manger and Le Pain Quotidien (Getty) 
After disastrous 2020, retail chains stage modest NYC comeback
After disastrous 2020, retail chains stage modest NYC comeback
312 West 43rd Street, National Real Estate Advisors CEO Jeffrey Kanne and Taconic Partners' Paul Pariser and Charles Bendit (Google Maps, National Real Estate Advisors, Taconic Partners)
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
Kei Komuro and Princess Mako (Getty)
Beauty and the lease: ex-Japanese royal moves to Hell’s Kitchen one-bedroom
Beauty and the lease: ex-Japanese royal moves to Hell’s Kitchen one-bedroom
Vornado Realty Trust’s Steven Roth and Michael Franco (Getty, Vornado)
NYC retail has hit bottom: Roth
NYC retail has hit bottom: Roth
Council committee approves Windermere office conversion
City Council committee approves Windermere office conversion
City Council committee approves Windermere office conversion
arrow_forward_ios

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

Loading...