The seller, who has owned the property since 1982 and completely renovated it, said it is now ready to sell, according to a spokesperson. Eastern Consolidated is marketing the site with an asking price of $49 million.
The retail space is occupied by retailers Burberry and Diesel at street level, and by multiple office and residential tenants above. Approximately $6 million of building-wide improvements have been made.
Eastern Consolidated's Ronald A. Solarz and Eric M. Anton, both senior managing directors, and analyst Zachary Bennett, are exclusively spearheading the marketing initiative. "Spring Street is unquestionably becoming the Madison Avenue of SoHo," says Solarz. "The street is home to a plethora of high-end international designer shops and British men's and women's designer Burberry, and Italian denim designer Diesel, the retail tenants in the property, are in that category."
Anton adds that the pair of elevatored loft office buildings are 100%-occupied by office tenants and eight residential tenants." Commercial tenants include an exclusive high-end jeweler; a visual effects production company, which worked on movies Harry Potter and Troy; a publicly owned advertising agency; and medical offices.
Burberry and Diesel's leases account for approximately 60% of the properties' total cash flow, extend through 2016 and 2015 respectively. Office rents average $35 per sf and provide for a gradual rollover of space with no more than roughly a third of the space rolling over in any given year, with the exception of 2009. The office totals 30,500 sf, and the residential space totals 17,600 sf. Solarz points out that it offers long-term cash flow with the added bonus of a potential residential condominium conversion capability down the road.
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