Hammacher Schlemmer building hits the market

Insiders expect property at 145 East 57th St. to fetch $75M
By Adam Pincus | June 27, 2016 12:45PM

The Hammacher Schlemmer building at145 East 57th Street and Glen Tolchin

The Hammacher Schlemmer building at 145 East 57th Street and Glenn Tolchin

The Midtown boutique office-and-retail building that’s been home to gadget store Hammacher Schlemmer for 90 years is on the market, and insiders expect it to sell for about $75 million.

The current owner, a U.S. subsidiary of Brazilian investment firm Grupo Victor Malzoni, acquired the property at 145-147 East 57th Street in May 2010 for $34 million from Jenel Management. It has since spent some $10 million renovating the 64,000-square-foot property, and filed plans in 2014 to build a 2,600-square-foot penthouse that will add another floor to the 12-story structure. The city approved those plans in March. The penthouse is complete and is awaiting a certification from the city, sources familiar with the building said.

A JLL team that includes Glenn Tolchin and Yoav Oelsner is marketing the property, located east of Billionaires’ Row between Lexington and Third avenues.

The listing suggests a variety of investment strategies, noting five floors of the building will be delivered vacant, so it can be leased up as an office building in an area where high-end asking rents are between $70 per square foot and $90 per square foot. But it also notes a potential buyer could convert the building into a commercial or residential condominium.

The Hammacher Schlemmer lease runs to 2023, and covers includes just under 8,000 square feet including 3,700 feet on the ground floor, sources said.

The ownership entity MIP145 East 57th Street LLC, represented in Department of Buildings’ filings by Rodrigo Moscoso, declined to comment.

Many observers believe the U.K’s vote to leave the European Union, known as Brexit, could increase demand for Manhattan commercial assets and drive up pricing.