Retail condos the latest trend in trendy LES market

Premier Equities among retail players making moves in neighborhood

New York /
Nov.November 16, 2015 02:34 PM

It’s no secret that the Lower East Side is appealing to real estate investors, and that’s playing out in the latest trend to hit the trendy neighborhood: a retail condominium boom.

Investors are increasingly selling retail condos – which are created during condo conversions of apartment buildings with ground-floor retail space – to take advantage of rising rent prices on the Lower East Side.

In a recent deal, Atkins & Breskin Co., which is based on the Lower East Side, sold its 5,200-square-foot retail condo at 147 East Houston Street to Midtown-based retail landlord Premier Equities for $5.75 million, according to the Wall Street Journal.

The property has three storefronts boosting its appeal, with one storefront to remain occupied by the Sapphire Lounge nightclub, which pays around $146 per square foot for its 1,000-square-foot space.

Another storefront on the corner of East Houston and Eldridge streets is vacant, while Premier Equities may look to replace the tenant at the third storefront, restaurant Lucky’s Famous Burgers.

Premier Equities is seeking banks, restaurants or fashion retailers for the space, according to RKF vice president Brian Segall, who along with Chris Masi represented both sides of the transaction.

Segall said the brokerage has found “a very active market” for retail condos in the area, with the firm having recently sold a retail condo at 50 Bond Street, a retail co-op at 684 Broadway and another retail condo not far from 147 East Houston Street.

“With the growth of new development, retail condos are becoming much more prevalent,” Segall said.

The market for office condos, meanwhile, is also picking up throughout Manhattan – with 59 office condo properties having sold for a total of $5.8 billion over the past 12 months, according to Real Capital Analytics. That’s a 134 percent increase year-over-year, according to the firm. [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
Union Square Hospitality Group CEO Danny Meyer and the Union Square Cafe (Photos via Getty; Wikipedia Commons)

Danny Meyer’s Union Square Hospitality halts indoor, outdoor dining

Danny Meyer’s Union Square Hospitality halts indoor, outdoor dining
From top: Park Place Mall in Tucson, AZ with Brookfield Property Partners CEO Brian Kingston; Westfield Countryside in Clearwater, FL with Unibail-Rodamco-Westfield CEO Christophe Cuvillier; and The Mall at Tuttle Crossing in Dublin, OH with Simon Property Group CEO David Simon (Google Maps, Westfield, Simon, Getty)

These are the biggest malls landlords ready to hand over to CMBS lenders

These are the biggest malls landlords ready to hand over to CMBS lenders
An analysis of data from CoStar found that retailers nationwide had missed two to four months’ rent (iStock)

Retailers now owe $52B in back rent

Retailers now owe $52B in back rent
Macy’s CEO Jeff Gennette (Getty; iStock)

Macy’s experiments with “dark stores”

Macy’s experiments with “dark stores”
Macerich’s Queens Center Mall (Photo via Macerich)

Macerich’s Queens Center Mall emerges from special servicing

Macerich’s Queens Center Mall emerges from special servicing
More restrictions are headed to New York restaurants, causing more challenges for restaurants struggling to get by during the pandemic (Getty)

NYC requires new safety measures for outdoor dining

NYC requires new safety measures for outdoor dining
Ralph Lauren on the on the corner of East 55th Street at 711 Fifth Avenue (Google Maps)

Ralph Lauren to sublease Fifth Ave. location for a fraction of the cost

Ralph Lauren to sublease Fifth Ave. location for a fraction of the cost
David Simon of Simon Property Group and Robert Taubman of Taubman Centers  (Getty)

Simon and Taubman reach a new merger deal

Simon and Taubman reach a new merger deal
arrow_forward_ios

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

Loading...