The Real Deal New York

Thor puts Dolce & Gabbana’s new Soho home on the market

Luxury brand inked triple-net lease for full property at 155 Mercer last year
By Mark Maurer | Twitter_logo_blue copy February 04, 2016 04:45PM

Joseph Sitt’s Thor Equities is looking to sell a four-story Soho retail building fully leased to Dolce & Gabbana, in the hopes of scoring a sizable profit, sources told The Real Deal.

Last year, the luxury fashion house signed a triple-net lease to occupy all four floors of the 14,600-square-foot property at 155 Mercer Street, between Prince and West Houston streets. The building, which is part of the Soho-Cast Iron Historic District, will serve as Dolce & Gabbana’s first full-service boutique in Soho and its third outpost in Manhattan.

Thor Equities TRData LogoTINY, a major Midtown West-based investment and development firm, is in the process of revamping the property for Dolce & Gabbana’s use. PKSB handled the design. Renovations include a restoration of the one-time firehouse’s 1854 façade and a new storefront.

Meridian Capital Group’s TRData LogoTINY Helen Hwang TRData LogoTINY is marketing the building for sale. The asking price for the property was not immediately clear.

“The opportunity to control a standalone retail property of this size anywhere in Manhattan is a rarity,” Hwang said.

The building features floor-to-ceiling windows, ceiling heights ranging from 15 to 21 feet, and 45 feet of frontage.

Average ground-floor retail asking rents in the neighborhood are $600 to $800 per square foot.

In 2013, Thor acquired the building for $27.3 million from nonprofit the Joyce Theater Foundation, which was also a tenant. The property was a former firehouse.

Thor is particularly active, having picked up retail co-ops at 169 Mercer Street and 424 Broome Street for $27 million and sold a retail co-op at 138 Greene Street for $38.5 million in recent months.

Luxury brands such as Versace, Tory Burch and Helmut Lang also have retail locations on Mercer Street. Dolce & Gabbana has stores uptown at 827 Madison Avenue and 717 Fifth Avenue.