Nightlife veteran John Blair inks deal for Hell’s Kitchen club

Lease structured around Covid restrictions

New York /
Jan.January 21, 2021 11:56 AM
Merchants Hospitality Inks Club Deal at Cachet Hotel (Google Maps, Playboy Club)

Merchants Hospitality Inks Club Deal at Cachet Hotel (Google Maps, Playboy Club)

 

New York City’s nightlife scene is dark for now, but one veteran club owner is betting on things bouncing back.

Nightlife impresario John Blair signed a lease for a 20,000-square-foot venue at the former Playboy Club at the Cachet Hotel in Hell’s Kitchen. The asking rent for the space was about $75 per square foot.

It’s a tricky time to begin working on opening a nightclub, as venues have been shut down since Gov. Andrew Cuomo reintroduced Covid-19 restrictions on places like bars and restaurants last month. OAR Management, owner of the hotel at 510 West 42nd Street, structured the deal so that Blair’s lease goes into effect only once those restrictions are lifted, according to Meridian Retail Leasing’s James Famularo, who negotiated the deal.

“If you didn’t structure it like that, a lot of tenants would say, ‘Why rent now? Why not wait until Cuomo says we can open things up again?,’” he said.

Another incentive: Blair gets to take over the roughly $12 million buildout the Playboy Club did on the space.

“When the situation changes, you can change the sign in front and start making money,” Famularo added.

Blair, a veteran of the gay nightlife scene famous for spots like the Roxy and Limelight, had previously operated a different club, the XL, at the hotel back in 2012, when it was known as The Out Hotel.

The deal fills the space left vacant when the Playboy Club exited the property in late 2019 amid allegations of malfeasance at the hotel by former Merchants partner Adam Hochfelder.





    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...