Daniel Gohari, VP and director of leasing at the Moinian Group, tells GlobeSt.com the diner has actually been open for business since last month, following an extensive capital improvement campaign and interior re-design. The Market Diner's new owners, James Athanasopoulos and Elias and John Tsinias, signed a 10-year lease for the property at 587 Eleventh Ave. Rent was not disclosed.

An artifact of the days when its neighborhood was known as one of the roughest in Manhattan--its clientele at one time included the now-disbanded Westies gang as well as celebrities who used it as a late-night hangout, including Frank Sinatra and Bette Midler--the 47-year-old Hell's Kitchen fixture is now looking at a more upscale customer base. Gohari says the diner's new owners were attracted by the burgeoning residential development nearby, including the Moinian Group's Atelier condominium at 635 W. 42nd St., which will be joined by an adjacent rental apartment building. A bellwether office tenant was also a draw: Ogilvy New York, which is scheduled to move into its new 564,000-square-foot headquarters at 636 Eleventh Ave. later this year.

"This was a major factor in attracting the tenant," Gohari tells GlobeSt.com. "The new owners operate several diners in Manhattan and are very familiar with the area. They knew that there were very few dining options in the area and that they could build on the success of the previous operator because of the new office tenants and residential development in the area."