Josh Flagg’s Family Firm Looking to Flip Soho Retail Property

The Flaggs are looking to flip their New York retail property.

Less than two years after Flagg Family Capital, the firm owned by the family of star residential broker and “Million Dollar Listing Los Angeles” star Josh Flagg, bought three floors of retail space in Soho, the property is back on the market.

Public records from the last time the retail properties at 170 Mercer Street traded to entities tied to developers Andrew Aryeh and David Elbaz in two separate transactions totaling $4 million. Flagg declined to confirm a purchase price, but said it “was an especially exciting acquisition for us alongside our partners,” Aryeh and Elbaz.

The purchase included the building’s first and second floors, along with the basement.

Flagg Family Capital is asking just under $12 million for the renovated space, according to a listing from Avison Young’s Brandon Polakoff. The renovation included removing the third floor to create a two-story retail space with 24-foot ceilings and exposed red brick.

Surrounded by upscale fashion brands like Tory Burch, Alaia and Prada, the space also comes with its own designer tenant, fashion house Magda Butrym, which has leased 100 percent of the space under a 10-year lease. Rent will begin on Aug. 1, 2026, and has built-in 3 percent annual escalations. The lease also leaves the tenant 100 percent responsible for tax increases starting next year, utilities and non-structural repairs.

The retail unit includes 25 feet of frontage along Mercer Street between Prince and West Houston streets, in the lower floors of a five-story luxury residential loft building.

“We remain extremely bullish on Manhattan commercial real estate overall,” Flagg said, adding that the firm is under contract for three other properties in the city.

Flagg, a broker with Compass, said the sale would represent the actualization of his vision for the company after he took over business operations in 2023. Flagg said he was looking to develop the firm’s investment in high-end areas.

“We are changing things up from our previous business model,” Flagg told The Real Deal around the time of the purchase. “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.”

In 2023, the broker bought a $4.3 million property at 4727 North Bay Road in Miami with business partners Adam Rubin and Andrew Shanfeld of Los Angeles-based Carolwood LP with plans to renovate and sell the property. The home, which is asking $10 million, has come on and off the market since late 2025, according to Zillow.