Josh Flagg’s Family Firm Buys Mercer Street Site in NYC

Josh Flagg’s family connections are tugging the L.A.-based agent eastward with recent deals in New York.

The “Million Dollar Listing Los Angeles” agent revealed last week the latest acquisition on Mercer Street in SoHo by the privately held Flagg Family Capital, owned by Josh’s parents Michael and Cindy Flagg.

About a month ago, Flagg Family Capital first purchased property at 170 Mercer Street, and on Christmas Eve closed on additional square footage at the same building in a joint venture with developers Andrew Aryeh and David Elbaz.

The deals amount to 5,500 square feet of retail, comprising the building’s basement, first floor and second floor.

Rialto Bank and the Chehebar family’s Jackson Group were the sellers. Flagg declined to provide pricing on both deals.

The pair of transactions secures a spot next to the Dries van Noten fashion shop, while providing proximity to other luxury brands, including Alaia, Rimowa, Marni and Khaite.

The space is currently undergoing renovations estimated to be completed by the third quarter. The family has tapped Isaacs and Company’s Jeremy Aidan to handle leasing for the property.

The acquisition brings the Flagg family back to its fashion roots: Their business began with the apparel brand Edith Flagg, named after Josh’s grandmother. Josh’s father Michael Flagg had previously served as president and chair of the fashion label before the family pivoted to commercial real estate.

The locations on Mercer Street also reflect Josh Flagg’s new strategy for the family business, which kicked off last year when his father turned 80 and shifted responsibilities of the business over to Josh.

The son, with a penchant for the upscale, is now focused on bringing the family’s real estate footprint into luxury markets. He clarified that the family doesn’t plan to return to clothes manufacturing or retailing, and the Mercer Street location is a commercial property investment.

“We are changing things up from our previous business model,” Josh Flagg said in a statement. “I am focusing on prime locations: Palm Beach, Miami, downtown New York … instead of shopping centers and office buildings, which is what we have traditionally done.”

Elsewhere in the country, Josh Flagg and business partners Adam Rubin and Andrew Shanfeld of Los Angeles-based Carolwood LP paid $4.3 million for 4727 North Bay Road in Miami, The Real Deal reported in the summer. The group is now in the process of renovating the property to list on the market in April. Carolwood LP is separate from Carolwood Estates, the Beverly Hills-based residential brokerage.

In Los Angeles, Flagg is in the process of adding his touch to the recently purchased Trousdale Estates home he bought from singer-songwriter Charlie Puth for $9 million. The four-bed, four-bath home at 1875 Carla Ridge in Beverly Hills was originally asking for just under $17 million.