ABC Carpet & Home shopping Flatiron HQ: sources

Brokers say luxury rug depot's 880-888 Broadway location could fetch $200M

New York /
Jul.July 26, 2016 04:00 PM

UPDATED, July 27, 11:07 a.m.: It may soon be time for ABC Carpet & Home to roll out a welcome mat for a new owner of its longtime headquarters.

The luxury carpet and rug purveyor is shopping around its property at 880-888 Broadway, an office-and-retail condominium that sources said could fetch upwards of $200 million, or over $2,600 per square foot.

The high-end rug purveyor has owned and fully occupied the six-story, 76,400-square-foot building since 1981. The property houses both a 20,600-square-foot retail condo and a 55,800-square-foot condo for office and manufacturing space.

A broker familiar with the property and the neighborhood said that depending on whether the space is acquired through a master lease purchase or a fee interest, the retail component is valued at between $75 million and $120 million. The broker said the upstairs loft office condo could fetch $85 million.

It is unclear whether ABC Carpet would vacate upon selling the building or make a sale-leaseback agreement. A source said that could vary based on the buyer.

A spokesperson for the company denied the building is for sale, but multiple sources in the market said it is being shopped around.

“Development interest in the building has been ongoing for decades, from all over the world,” the spokesperson said in a statement. “ABC Home’s CEO Paulette Cole and CFO Dave Lauber continue to explore creative business development and innovative investment to continue the evolution of the company’s visionary position.”

According to sources, the search for a buyer is being performed in-house.

“This is a brand building that works best as a long-term hold,” said Douglas Elliman’s TRData LogoTINY Faith Hope Consolo. “There has been a bit of a summer slowdown, but prime property still trades at prime prices.”

The building, located on the corner of East 19th Street, was constructed in 1882 as a home for furniture and carpet company W. J. & Sloane.

The Weinrib family founded ABC Carpet & Home in 1897. Jerome Weinrib took over the business in 1961 and opened its first retail location at 881-887 Broadway in the Flatiron District. In 1981, ABC expanded and renovated the building across the street, at 880-888 Broadway, into its flagship location.

The company generates sales of about $150 million annually, the New York Times reported. But there have been hardships: Last month, the company announced it will soon shutter its operation at a Bronx warehouse, saying it was no longer “strategically viable.” About 70 people will be laid off.

Hiten Samtani contributed reporting


Related Articles

arrow_forward_ios
Manhattan Office Market Marking Gains in Flight to Quality (iStock)
Flight to quality drove gains in Manhattan office market
Flight to quality drove gains in Manhattan office market
(iStock/Illustration by Kevin Rebong for The Real Deal)
Manhattan’s November office leasing surpassed pre-pandemic levels
Manhattan’s November office leasing surpassed pre-pandemic levels
Tishman Speyer buys pair of industrial assets in diversification play
Tishman Speyer buys pair of industrial assets in diversification play
Tishman Speyer buys pair of industrial assets in diversification play
Aby Rosen’s RFR Holding to drop $300M on Midtown office building
Aby Rosen’s RFR Holding to drop $300M on Midtown office building
Aby Rosen’s RFR Holding to drop $300M on Midtown office building
Clockwise from top left: Constellation Agency's Matt Woodruff and Diana Lee with One World Trade Center, DailyPay's Jason Lee with 55 Water Street, Index Exchange's Andrew Casale with 3 World Trade Center and Tinuiti's Zach Morrison with 111 West 33rd Street
Tech firms lead sublease charge into Manhattan’s office market
Tech firms lead sublease charge into Manhattan’s office market
Manhattan office leasing breaks 3M sf barrier for first time since early 2020
Manhattan office leasing breaks 3M sf barrier for first time since early 2020
Manhattan office leasing breaks 3M sf barrier for first time since early 2020
5 East 59th Street (Google Maps, 5e59.com)
Singapore bank sues to foreclose on ex-Playboy Club building
Singapore bank sues to foreclose on ex-Playboy Club building
Boston Properties’ Owen Thomas, Vornado Realty Trust’s Steve Roth, Paramount Group’s Albert Behler, SL Green’s Marc Holliday and Empire Real Estate Trust’s Tony Malkin  (iStock, slgreen.com, vno.com, paramount-group.com, esrtreit.com, LinkedIn)
Office landlords profess optimism despite dip in occupancy
Office landlords profess optimism despite dip in occupancy
arrow_forward_ios

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

Loading...