Carl’s Jr. to open first Manhattan restaurant across from Penn Station

Fast-food joint is negotiating to lease a huge billboard as well

New York /
Nov.November 10, 2017 01:45 PM

UPDATED, Nov. 10 at 2:27 p.m.: Burger chain Carl’s Jr. is negotiating to lease a huge billboard near Penn Station with an asking rent of $1.2 million. And it also signed a lease for a store.

The fast-food franchise, operated by Tennessee-based CKE Restaurant Holdings, is opening its first Manhattan store at 425-427 Seventh Avenue, the broker who negotiated the lease told The Real Deal.

“They wanted to make a big splash in New York and this is the way to do it,” said Albert Manopla of Kassin Sabbagh Realty, who represented the tenant along with KSR’s Avi Akkiva. “Seventh Avenue and 34th Street is one of the most heavily trafficked intersections in New York City.”

KSR’s David Marciano represented landlord DK China.

The asking rent for the 15-year deal, which covers 3,300 square feet across three floors, was $900,000 per year, Manopla said.

But Carl’s Jr. will pay more for the large billboard outside the building than it pays for its lease. Manopla said the restaurant is negotiating to lease the sign, at an asking rent of $1.2 million per year.

Manopla declined to comment on the billboard. Landlord DK China operates the property through a net lease with the property’s owner, United Pacific Development Corp.

Once-gritty retail around the Penn Station area is getting a fresh look with major redevelopment projects on the Far West Side, such as Vornado Realty Trust’s overhaul of its properties at One And Two Penn Plaza.

Carl’s Jr. is reportedly also opening a location in Coney Island.

Correction: A previous version of this article incorrectly stated that Carl’s Jr. had signed a lease for a billboard with an asking rent of $1.2 million, based on information provided by the broker.


Related Articles

arrow_forward_ios
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
Innovo lands $155M construction loan for LIC warehouse
Innovo lands $155M construction loan for LIC warehouse
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
Retailer Burlington plans to double store count
Retailer Burlington plans to double store count
(Getty, Photo Illustration by The Real Deal)
Retail had its reckoning. Will subleases flood the market?
Retail had its reckoning. Will subleases flood the market?
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
arrow_forward_ios

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

Loading...