Klein Group to buy $25M Midtown East retail condo

Retail landlord acquiring 8K sf unit at base of new 29-story building on East 50th Street

TRD New York /
May.May 11, 2016 05:05 PM

The Klein Group is in contract to acquire an 8,200-square-foot retail unit at the base of a new Midtown East residential tower for around $25.5 million, sources told The Real Deal.

The retail property at 301 East 50th Street, on the corner of Second Avenue, is located at the base of CBSK Ironstate’s new 29-story, 57-unit condominium building slated to open this year.

In an off-market deal, the Florham Park, N.J.-based landlord is paying the developers roughly $3,100 per square foot for the commercial unit at the base of the tower, which features 6,200 square feet of street-level retail space and an additional 2,000 square feet on a lower level.

Urgent health care provider CityMD is already signed on for more than 3,000 square feet at the property, which it is currently building out, sources said. The remaining, roughly 5,000 square feet remains on the market and can accommodate up to two additional tenants. Ross Kaplan and Kate Cohen of Newmark Grubb Knight Frank are handling leasing.

Sources said the Klein Group hopes to command north of $200 per square foot for the space, which is newly constructed and features high ceilings and a corner location.

The Klein Group declined to comment on the matter, while CBSK Ironstate could not immediately be reached for comment.

CBSK Ironstate — a joint venture between CB Developers, SK Development and Ironstate Development — paid Fishman Holdings nearly $69 million to acquire the Midtown East development site in 2013. The COOKFOX-designed, 140,000-square-foot condo building, which features a $10.25 million top-floor penthouse unit, is expected to open this spring.

The Klein Group acquired a 36,000-square-foot Upper West Side retail condo from Larry Cohen’s Starrett Corp. for more than $60 million last fall, and subsequently leased 20,000 square feet at the property to popular grocery chain Trader Joe’s, as The Real Deal reported.

The company, led by Jacob Klein, owns a portfolio of retail assets predominately located in Manhattan and New Jersey.

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