The Real Deal New York

Flatiron hotel leasehold, building sell for $2K per foot

$35M deal for 893 Broadway is one of priciest along area’s Broadway strip
By Mark Maurer | March 10, 2015 12:40PM

A four-story mixed-use building in the Flatiron District and the leasehold interest of the hotel component has sold for $35 million, or $2,000 per square foot, in one of the priciest property deals on a per-square-foot basis along that Broadway strip to date, The Real Deal has learned.

A Manhattan-based investor identified only as Cholla LLC acquired both the 17,500-square-foot, L-shaped property at 893 Broadway, or 13 East 19th Street, and the leasehold interest for Hotel Verite. The price of $2,000 per square foot includes the hotel on the floors above the retail.

Roslyn Heights, N.Y.-based investor Judith Green, who controls Warman Enterprises LLC, was the seller.

The 19-room hotel, which opened in 2011, spans 13,500 square feet. Korean gastropub Barn Joo and whiskey bar the Grain lease the remaining the space at the building. Lord & Taylor and Jennifer Convertibles were previous tenants.

Eastern Consolidated’s Adelaide Polsinelli represented the buyer and the building owner. PD Properties’ Tony Park represented Charles Jung, who owned the leasehold interest in the hotel.

Further north on Broadway, KLM Construction paid $120 million, or nearly $1,100 square foot, last year for a 110,000-square-foot office building at 920 Broadway, near East 21st Street, as previously reported.

The Stretch Along Broadway from 23rd to 30th streets is undergoing a major change in retail.