NEW YORK CITY-It’s official: a joint venture of the Kushner Cos. and Los Angeles-based CIM Group have closed on 200 Lafayette Street, a seven-story property in the Cast Iron District of SoHo, for $50 million. The building, located on the northwest corner of Broome and Lafayette Streets, will be renovated and converted for office and retail use.
“It’s such a wonderful building with so much vacant,” says Robert Burton, senior vice president of sales at Massey Knakal Realty Services, who exclusively handled the transaction for the seller John Zaccaro. “There’s so much potential in that building.”
Both CIM and Kushner are planning to repurpose the building into a class A, LEED-certified office and retail property, which is scheduled to begin later this year. Currently, Capital One Bank occupies 4,500 square feet of ground floor retail, and 16,500 square feet of retail and approximately 100,000 square feet of rentable office space are available.
A source close to deal tells GlobeSt.com that SL Green Realty Corp., Manhattan’s largest office REIT, provided bridge financing for the project, but will not be involved with reconstruction or management on the site.
The repositioning comes at a time when both CIM and Kushner are actively acquiring or developing sites throughout the city. On the multifamily side, CIM and real estate titan Harry Macklowe are planning to build Manhattan’s tallest condominium tower after the company snatched up a Park Avenue development parcel for $305 million last year. The project, called 432 Park Ave., will include 128 condos and will rise 1,300 feet on the site of the former Drake Hotel.
On the office front, Kushner recently entered into a JV with Vornado Realty Trust to recap the office portion of 666 Fifth Ave. Outside of New York, the Kushners are one of the bidders for the LA Dodgers baseball franchise, according to the New York Post.
UPDATE: Both Debra La Chance and Ariel Brenner of La Chance + Associates/Corcoran represented Kushner on the deal.
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