The Real Deal New York

ABC Carpet & Home shopping Flatiron HQ: sources

Brokers say luxury rug depot's 880-888 Broadway location could fetch $200M
By Mark Maurer | Twitter_logo_blue copy July 26, 2016 04:00PM

880 Broadway

880-888 Broadway in the Flatiron District

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