NEW YORK CITY-Continuing to grow its presence in New York, CIM Group has purchased retail space at 225 Fifth Ave., the company announced on Wednesday in a press release. The sale was made for $80 million, according to Crain's New York Business. Adam Spies and Doug Harmon of Eastdil Secured arranged the sale on behalf of seller Extell Development. The newly acquired stores consist of two parcels totaling 40,079 square feet of corner space that comprise approximately 200 feet of pedestrian frontage.
The space is 100% leased to several long-term tenants, including JP Morgan Chase, 24 Hour Fitness, Verizon Wireless, and United States Postal Service. It overlooks the north end of Madison Square Park, in the city's Flatiron District. The building's ground floor features 15-foot ceilings while the stores sit below a condominium complex that has been recognized as a New York City Landmark by the Landmarks Preservation Commission.
The 12-story building features about 200 units and is known as the Grand Madison. Originally dubbed the Brunswick Building, the pre-war structure was built in 1906 and was the home of the Coaching Club, which held carriage parades up Fifth Avenue. Its storied history also has included stints as a hotel, warehouse and home to sales showrooms for gift wholesalers, earning it the moniker of the Gift Building. In 2006 the structure was converted to condos by Elad Properties. It's managed by Cooper Square Realty.
The purchase from Extell continues CIM Group's expansion into Manhattan's East Side, having bought 200 Lafayette St. last February and then picking up 303 E. 51st St. in March 2012. Situated in the Cast Iron Group, 200 Lafayette is a seven-story office and retail facility. It houses about 100,000 square feet of office space and around 21,000 square feet of retail space. The later edifice is a residential and retail site being co-developed by affiliates of CIM and HFZ Capital Group. The property is slated to include 123 units and about 9,000 square feet of ground floor retail space.
CIM previously bought 432 Park Ave. and 737 Park Ave. The former site includes what was once the Drake Hotel along with adjoining parcels along 56th and 57th Sts., comprising approximately 33,000 square feet. The latter structure is a residential building comprised of 102 units and three professional offices. The company also has 72 Sullivan St. in its portfolio.
Last month, the Los Angeles-based firm continued to grow its East Coast presence with a big buy in Washington, DC. It signed a 10-year lease agreement with NeighborWorks America for approximately 65,000 square feet at 999 North Capitol, part of the two-building Union Square office complex in DC's burgeoning NoMa district (North of Massachusetts Avenue). NeighborWorks America, which provides access to homeownership and affordable rental housing, will relocate its national headquarters to the building in the second quarter.
The Union Square complex is within a short walking distance of Union Station—a transportation hub for Metro, Amtrak, and commuter rail services. Both buildings have recently been renovated and, together, comprise four million square feet of office, residential, hotel and retail space in a 35-block area.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
